Different Types of Companies and Their Operations

Business in Practice
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Contents
Introduction 3
Section 1: Different types of companies and how they work 3
Section 2: Different companies from sole traders to cooperatives and
Limited Liability Partnerships 4
Conclusion 8
Reference List 9
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Introduction
Business refers to the separate legal entity which in involving manufacturing product
and services with the consideration of earning higher profits for the company by which they
can more towards success and growth. When an individual or the group of people are engage
in conducting some sort of business with the sole aim of generating higher profits so that they
can expand their market to the new locations (Bosbach, Brillinger and Schäfer, 2020.) this
report will cover the different type of business which are being operated in the business
environment and also cover the business on the basis of their operations such as sole trader,
partnership and public limited company.
Section 1: Different types of companies and how they work
Micro business:
Definition- These are the venture which s being formed for the survival of the
individual as they are having limited resources and funds which usually cover the local
marketplace.
Characteristics- The main attribute of the firm is that they are operating their
business with 0-9 employees and generate the average revenue of 632000 euros.
Example- Boss Brewing venture is the suitable example for small size business as
they are giving nominal wages to their employees.
Small business:
Definition- It is the business which is having certain employment opportunities and
they are giving employment up to 49 employees and also ensure higher profits.
Characteristics- The key attribute of the small business is that they usually work up
to 49 employees and they usually do not pay the tax due to low profit margin.
Example- the best example for small venture is Cafe pod coffee co. It is the leading
manufacturer of coffee and providing best services with innovative flavour.
Medium size business:
Definition- It is the type of business which is operating their business with 50-250 -
employees and working on their set plans and policies. They also having sufficient funds and
capital by which they can get effective results in profits and growth.
Characteristics-they basically work in the competitive environment and having more
than 50 employees for their higher profits and growth.
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