Types of Companies

Types of Companies
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION 1......................................................................................................................................3
SECTION 2......................................................................................................................................5
SECTION 3......................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Companies have formed businesses which have become popular in all these years.
Development in companies has made creation of new kinds of companies. Companies are
basically divided on the basis of some factors like members, control and liabilities. In simpler
words company is that form of organisation which is formed by law. It is defined as association
of individuals, formed to perform activities and tasks, have legal existence that is separated from
members and it has a common seal (Gherhes, Vorley and Brooks, 2020).
MAIN BODY
SECTION 1
There are different type of companies which work differently and uniquely as they have
incorporated with different motives and purposes. Some of the companies include micro
business, small business, medium size business and large size business. They are explained
below with their definition and characteristics.
Micro Business
Micro businesses are type of businesses that do activities on a quite small scale. The scale
is defined according to the number of personnel, capital and total sales and profit (Linton, J.D.
and Solomon, 2017). Some of the examples of micro business operating in UK are: Issoria,
Castle Hill Fire Protection Ltd and Manton Cards.
Characteristics of micro business
 Ownership: Micro businesses have the same person as manager and owner. They have
very limited number of employees.
 Market reach: The reach of micro business is local, it deals with local customers and
resources.
 Life span: The nature of operations are very dynamic, their creation and dissolution are
very rapid.
 Administration: The people are not professional, they are basically family members.
Small Business
Small business is privately owned sole proprietorships, partnerships or corporations
which have few employees and have lower revenue as compared to regular sized corporation.
These businesses are defined as small because they are applicable for applying support and
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