Different Types of Companies and Their Structures

This report explores the different types of companies and their structures, including micro, small, medium, and large businesses, as well as sole traders, partnerships, cooperatives, and limited liability partnerships. It also discusses how organizational structure affects business productivity and how external factors like political, economic, social, and technological factors impact business performance.

Business Management with Foundation
Business in Practice
Assessment 1
Types of Companies
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Contents
Introduction 2
Section 1: Different types of companies and how they work
P
Section 2: Different companies from sole traders to cooperatives
and Limited Liability Partnerships p
Section 3: Different businesses structures and internal factors
affecting business p
Conclusion p
Reference List p
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Introduction
A company is known as corporate or an incorporated business that is mainly
registered under the Company's Act. This can be a limited or an unlimited company
as for example private or a public company. In addition, a company is also known for
its legal entity that is formed by a group of individuals to involve within this and
operate the business in most appropriate manner that is generally commercial or
industrial types of companies. Moreover, The line of business is generally helpful to
determine owner of company that which of business structure it chooses such as
partnership, proprietorship and corporation. Now, in respect of this report, as the
business analyst of multinational company, assigned to investigate different types
and sizes of business in order to specify how different internal and external factor
impact the businesses.(Konietzko, and et.,al 2020)
Section 1: Different types of companies and how they work
Micro business:
The micro business is the terms refers to small business that mainly employs some
of the peoples into the organization. In addition, a micro business generally helpful
to operate with less than 10 people and is started with very less amount of capital.
Moreover, the micro business helpful to serve an important purpose in order to
improve the quality living of peoples in most of the developing countries, and this
mainly provides product or services within its communities. In addition, of this topic
micro enterprises, this not only assist to improve quality and life of peoples, this also
provides several advantages to the local economy. This micro business can boost
the power of purchasing, income advancement and generate employment for the
peoples related with these micro enterprises..
Small business:
A small business is an independently owned and operated company that is limited in
its size and generating revenue that depends on the industry. A small business is
also assist to create a special position inside any of the industrial sector. Due to its
capabilities to utilize labor and generating employment. The nature of small business
is small in its budget in which the sole proprietor or the small group of peoples will
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operate its small business. The small business is also refers to the term labor
intensive. Due, to its situation is sometimes common because of its low income that
means their economy or business cannot afford investment beyond its capital.
Moreover, when the discussion is about indigenous technology, due to the
indigenous technology small business is being more community focused and labor
oriented and sometimes becomes thrive upon the native methods of such
operations. As for example, the indigenous knowledge systems mainly comprises
the art of using natural resources, that assist society to make decisions about unique
activities will take place in company on time basis (Neelam, and et.,al 2020).
Medium size business:
A medium sized business is the terms that refers to the business that assist to
maintain revenues, assets or numbers of employee in appropriate manner. The
medium sized enterprises plays vital role in economy in order to employing the vast
numbers of peoples. This process assist to provide shape to the innovation, Due to
government offer incentives in regular manner that includes the approbation taxes,
care and better access for loans, to help and keep the business more productive. In
addition, small medium enterprise comprises up to 250 employee under the acts of
companies of the year 2006. This small medium enterprises may be family owned
and managed business but for reasons of its size. moreover, A medium enterprises
may also be the complex enterprises sometimes ,due to its ownership is separated
from the management. Moreover, a medium sized business is normally a well
established and contain an observable track record which facilitates several
decisions related from lenders or investors (Huang, and et.,al).
Large size business:
A large business is the business that exceeds the limits and turnover. A large
business is mainly responsible for 40 percent of employment in UK. In addition, a
large business also comes with more possibilities and productivity in its terms of
finances. Moreover, this assist to solve start-ups and small business are more
numerous than large business in the country UK. However, the large businesses
have created its own unique recognition. That is not only related from consumer
space but also within the areas like culture and social corporate responsibilities. In
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addition, a large business is generally a large name in bureaucracy that generally
means glass ceilings, siloed thinking or corporate jargon. Consequently, large
business comprises the annual turnover that is 1.5 billions and also have balance
sheet of more than 2 billion Euros (Laukkanen and Tura, 2020).
Section 2: Different companies from sole traders to
cooperatives and Limited Liability Partnerships
Sole trader business:
The sole trader business is also known as the sole proprietorship- The sole
proprietorship belongs to some of the simple arrangement of business, in which
each and every of individuals needs to runs its entire business. These are the
business are registered as the sole trader. This may only consists the owner and
more additional employee inside the companies. Moreover, the sole trader is self-
employed person who is mainly interconnected with the organization. In addition, the
sole trader business is really a simplest form of the business structure that is
relatively easiest and as inexpensive to get set in appropriate manner. Apart, from
this sole trader form of business is sometimes, legal and become responsible for
every aspect of business. The company is mainly able to make appropriate decisions
and hire best suitable employee inside the organization.(Austin and Nolan, 2020.)
Partnership:
A partnership is a business run by its multiple owners. This is not a legal entity of any
of business, and this does not need to be registered with any state. In addition, if
any of people decided to go within business with another person, they are
automatically in partnership without doing any of the paper work. However, the main
purpose of partnership is to proper establishment of business by the help of legal
contract in between two or more individuals or other legal enterprises. Moreover, the
agreement of partnership assist to assign the duties and responsibilities of each
partner or enterprises that is involved. Consequently, a business partnership not
have lawful status. It is mainly a type of straight forward business agreements in
between two or more peoples who wants to work together. However, every business
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profit is divided in between its partners with the help of each partner is ready to pay
its taxes and shares. Each and every partner is personally accountable for any of
profit and losses that businesses earns (Cagnin and Nakagawa, 2021).
. There are three types of the partnership is as followings-
 General partnership- A general partnership, is form of partnership in which
the fundamental form of partnership is utilized under common law. In addition,
general partnership will agree for unlimited liability. That means liabilities are
not capped and also can be paid by assistance of owners and its assets.
Therefore, any of partners may be sued for debts of the businesses. Apart,
from this, general partnership will offers participants and flexibility to re-shape
the business. That means, this allows for more fast and decision management
in comparison to the enterprises.
 Limited partnership- A limited partnership is generally exists when two or
more go within business together. That means limited partners are mainly
responsible for amount of investment within enterprise. In addition, limited
partners is defined as having limited partners, that mainly comprises unlimited
liability. Apart, from this a limited partnership invests its money in exchange
for shares within its partnership but also contains restricted power of voting
and no involvement of day to day in business (Dziubaniuk, and Nyholm, 2020)
 Joint venture- a joint ventures mainly involves two or more businesses that
assist to pooling its resources and expertise to achieve its specific goals. In
addition, A joint ventures is related from the arrangement of business created
by two or more than two parties. This means, it is mainly characterized by
ownership that is shared, shared returns or risks and shared governance. In
addition, companies assist by joint ventures in order to gain scales and
efficiencies by combining assets and operations. This means to share risk for
major investments of projects within enterprises.
Limited liability business:
The limited liability is the structure of the business for the private companies. This is
one of the most common legal entities to make a new business. In addition the
limited liability partnership are the liabilities are limited for the amount that put in
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business forms. That means limited liability is partnership which fails when creditors
of enterprises cannot go after the partners personal assets and their incomes.
Apart,from this benefits of generating limited liability partnership is generally
providing a balance of management control with its reduced liability of its exposures.
Similarly, a limited partnership permits an eligible parties to innovate a business
entity. That mainly allows its partners to actively provides contributions in its
operation of their business (Neelam, and et.,al 2020).
Public limited liability business:
The public limited liabilities company is designates a company that mainly get offers
the shares and stocks to general public. That means buyers of those shares
comprise limited liability. In addition, the owner of company is responsible for losses
of business in relation to excess of the amount that paid for its shares. However, this
means shareholders have limited liability, that provides major benefits of this types of
business. The public liability company also raise capitals by providing shares from
public. This generally means, listing of public stocks and exchange that attracts
stakeholder of companies
Cooperative:
The co-operatives are people focused enterprises owned and controlled by its
members. This generally means to realize its common economic, cultural as well as
social needs and their aspirations. Moreover, The co-operative assist to bring
peoples together in a democratic and equal manner. This means a co-operative
business driven by its values and putting fairness, equality and social justice at its
heart of organization. In addition, co-operative around the world are allowing peoples
to work together and to create sustainability within enterprises. Apart, from this co-
operatives allows people to keep control of its future economy, by the help of giving
social benefits of their activities to stay within their communities.
.
Section 3: Different business structures and external
factors affecting business
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3.1 Identification of different organizational structures and
explaining how does organisational structure affect business
productivity
functional structures;
A functional structure of organization is structure that is used to organize workers.
This means, functional structure is based on their specific skills and knowledge. In
addition, it vertically provides structure in every departments with its roles of finance
and sales departments, to customer service and employees assigned for particular
products and services. Apart, from this also provides several benefits of
specialization, like functional structure assist to divide whole company into several
departments on the basis of some important activities that is performed. That
generally means, each and every department is headed by its expert, this helps in
more and better work that is being finished in much of the lesser period of time.
Therefore, the benefits of specialization is really helpful for organization (Shpak and
et.,al 2020).
Divisional structures;
A divisional structure organizes the several activities of business around
geographical, market product and services of groups. Therefore, an organization on
divisional lines have several operating groups. Moreover, this generally means, this
approach is useful when decision making should be implemented at the divisional
level. In addition, divisional structure is generally useful when a company has several
products and services. However, this can cause higher cost for company and
provides results within a small number and do not necessarily work together for good
of entire enterprise
.
3.2 How different external factors affect the performance of
a business – PESTLE Analysis
Pestle analysis is sometimes also referred as pest analysis. This is mainly a
concept of marketing and its principles. In addition, this concept is used as a major
tool by organization to keep a track of the external factors that impacts within
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organization. Therefore, Pestle analysis also called forms of much more important
function of Swot analysis. Now in respect to know performance of business here are
some discussion about pestle analysis is as follows;
Political factors- The political factors are all about to know what degree a
government intervenes within economy or some of the enterprises. In addition, this
generally means that these political factors is responsible to know political situation
of country. For example, what types of government leadership is affecting decisions
of specific country. That means all the policies, taxes, laws and government
conscription over the trade falls under this factors.
Economic factors- The economic factor includes all of determinants of economy
that affects on business. That generally includes, the inflation rates, the fiscal and
monetary policies or foreign exchange rates that mainly affects imports and exports
of company. However, this assist to determine the direction, which is based
movement of economy. Therefore, by the help of which business analyses these
factors, so they can build appropriate strategies for company (Sanasi, and
et.,al2020).
Social factors- The social factors are different in every countries. Due to every
country has a unique mindset. This generally means mindset can affect on every
business sales on their product and services. Therefore, the cultural complexities is
interconnected with gender and social lifestyle of domestic structure. However, all of
these things are studied by organization to understand customer and market in a
better way.
Technological factors- The technological factor is majorly influenced by business.
Due to technology is changing every minute and in order to influence customer
companies required to stay interconnected and integrate when needed. Therefore,
these factors are analyzed to recognize consumer reaction to technological trends
and how they use for their benefits.
Environmental factors- The environmental factor of countries influence on the
trades that every business will do. In addition, there are many climate changes that
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affects the trade of industries and the way consumers reacts towards on some
offerings of products that is launched in market. Therefore, environmental factor
majorly affects the agricultural business and farming sector.
Legal factors- The legal factors related to legislative changes that occurs from time
to time and affect the business environment. For example, if some of regulatory body
would set up some regulation for the industries, then that particular law will impact all
industries and business that affects economy. Therefore, by the help of this, any
business is capable to determine the legal developments happening in company.
Conclusion
from, the above report the conclusion of the topic is as follows- the company is a
corporate or incorporate business that mainly affects on different types of
companies. This means how they work, like there are three types of business micro,
small and medium sized, the small business refers to assist to create a special
position inside any of the industrial sector. Therefore it means a nature of small
business is small in its budget in which the sole proprietor or the small group of
peoples will operate its small business. Apart from this medium sized business,
plays vital role in economy in order to employing the vast numbers of peoples. This
report also consists of different organization structure and explaining how does this
affects the performance of business. Moreover different organizational structure
consist of divisional structure and functional structure that aid major benefits for the
company..
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Reference List;
Konietzko, Baldassarre, Brown, Bocken and Hultink, 2020. Circular business
model experimentation: Demystifying assumptions. Journal of cleaner
production, 277, p.122596.
Sanasi, Ghezzi, Cavallo and Rangone, 2020. Making sense of the sharing
economy: a business model innovation perspective. Technology Analysis & Strategic
Management, 32(8), pp.895-909.
Huang, I.Y., Manning, L., James, K.L., Grigoriadis, V., Millington, A., Wood, V. and
Ward, S., 2020. Food waste management: a review of retailers’ business practices
and their implications for sustainable value. Journal of Cleaner Production,
p.125484.
Austin and Nolan, 2020. Performance Hacking: The Contagious Business Practice
that Corrodes Corporate Culture, Undermines Core Values, and Damages Great
Companies.
Laukkanen, M. and Tura, N., 2020. The potential of sharing economy business
models for sustainable value creation. Journal of Cleaner production, 253, p.120004.
Gudic, M., Tan, T.K. and Flynn, P.M. eds., 2020. Beyond the Bottom Line:
Integrating Sustainability Into Business and Management Practice. Routledge.
Cagnin, M.I. and Nakagawa, E.Y., 2021. Towards dynamic processes-of-business
processes: a new understanding. Business Process Management Journal.
Dziubaniuk, O. and Nyholm, M., 2020. Constructivist approach in teaching
sustainability and business ethics: a case study. International Journal of
Sustainability in Higher Education.
Neelam, Sheorey, Bhattacharya, and Kunte, 2020. Organization for Economic Co-
operation and Development guidelines for learning organization in higher education
and its impact on lifelong learning–evidence from Indian business schools. VINE
Journal of Information and Knowledge Management Systems.
Shpak, N., Naychuk-Khrushch, M., Kohut, U., Honchar, M. and Sroka, W., 2020. The
usage of modern instruments of business planning administration for small
enterprises: A case study analysis. Central European Business Review, 9(1), p.20.
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