Types of Companies and Organizational Structures - Desklib

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
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1

Contents
Table of Contents
Introduction...................................................................................................................3
Section 1.......................................................................................................................3
Several types of organizations and how they work..............................................3
Section 2.......................................................................................................................4
Various companies from limited liability partnership and sole traders to
cooperatives.........................................................................................................4
Section 3.......................................................................................................................6
Determination of several organizational structures and explaining how does it
affect business productivity. ................................................................................6
How several external elements create an impact on the performance of business
..............................................................................................................................7
CONCLUSION..............................................................................................................8
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Introduction
In the economy every business is structured where it is having individual legal entity
which focus in innovation and ideas to gain large market share and growth (Smerek and
Vetráková, 2020). The business entity is commercial institution where it helps to engaged in
business activities in sale off good and services. In this following report it is been discussed
about relevant topic of different types of companies with involving various entities such as
sole trade artnership, limited company etc. and business structures with the PESTEL analysis
Section 1
Several types of organizations and how they work
There are several kinds of companies which is involved with medium, macro, micro,
small and large business organizations. Each business follows their own way of doing the
work. With respect to its characteristics and examples it is being determined below: -
Micro business: -
It is defined as a part of small business which operates on a very small scale. There
are less than 10 individuals and is mainly considered as a sole proprietorship business. Their
annual turnover is below 2 million (Verbeke., 2020). It needs low investment with low level
of employment. The organization is tackled by single owner only and in certain situations
they appoint even no workers.
Characteristics: -
 The business is maintained by a single individual. There is no kind of partnership
which is being accessible.
 Micro businesses don't use the way of written communication. As the aspect of verbal
communication is considered more desirable.
 The operations are done at local level only because both employees as well as owners
live in their home society only.
Example: - The UK based company, Proviz, is a micro business sector which was founded
by two brothers and offers cycling clothing and accessories.
Small business:-
It refers to a business organization which is a private corporation. They are involved
with less staff members but more than micro companies. Their turnover is around 10 million.
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