Types of Company and Business Structure

This report provides an overview of different types of companies and their business structures. It explains the characteristics and examples of small, medium, micro, and large-scale businesses. It also discusses the concept of sole trader, partnership, limited liability, public limited, and cooperative businesses. Additionally, the report includes a PESTLE analysis of TESCO, focusing on the political, economic, social, technological, legal, and environmental factors affecting the company.

Types of company

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Different types of companies and how they work......................................................................4
TASK 2............................................................................................................................................7
TASK 3............................................................................................................................................9
Business Structure.......................................................................................................................9
REFRENCES ................................................................................................................................12
Books and Journal.....................................................................................................................12

INTRODUCTION
A company, is a legal and authorized entity which shows an relation and connections of
individuals , whether its formal or natural with a aim of making money and with the particular
objectives and aims. This report is going to explain about the types of the business which
considered small business, medium size business and large size business (Li, 2020).This report
is also going to explain about the external factors which create impacts on the business in context
of their growth and development in the market. In this report, the pestle analysis of TESCO has
been going to conducted. TESCO is a multinational retail company that sales and trade clothes,
shoes, groceries, furniture and many more products.
Main Body
TASK 1
Different types of companies and how they work.
Small business:
Small business are privately owned companies or partnership that have less workers or
less annual revenue is compared to regular size business or company. Small business in several
countries or Nation in wall services or retail operations like convince in stores small grocery
stores, bakeries, guest house, and many more (Kahn, 2018). Small business that functions on a
small scale level and include less number of labors is also known as small business small scale
industries are the kind of industries which produce products and services on small scale level.
Characteristics of small business:
There are several types of characteristics which represent the small scale company. The
characteristics of small business pension below
Lower revenue and profitability small scale business revenue is generally less than as compared
to the larger scale. Lower revenue does not represent or translate into less profitability it support
the company to keep cost less than more leveraged company. Small team of employees workers
small scale business considered a small team of workers as compared to larger scale company.

The smallest business is operating by single or small teams. Focused, there are several small
business owners that handle the huge Responsibility in their company. The capability to block
out the distraction and concentrate on the issues of goals and objective help them to become a
successful entrepreneur and dealing with the market. Limited area of locations small scale
business only found in a limited area. Small scale business Run from single office or a single
outlet. Partnership ownership and Taxes small scale business prefer to run or operate as a sole
proprietorship or limited liability company (Lewellyn, 2018). Small scale organization caters the
highest degree of managerial control for organization owners while reducing the expenses of
business registration.
There are several best example of small companies with the more success and these
example are mentioned below:
Broad world event house, car washing, catering business, internet business, gardening
business ,sandwich bar, fast food delivery restaurant, coffee shop and many more.
Medium Size Business:
Medium size business is explain within the Companies Act 2006 as a company with 250
workers. Medium size business are the business whose personal numbers go down below some
certain limits.
There are several characteristics of a small and medium scale industries and these
characteristics are mentioned below:
Medium scale industries corporate and owned independently. They are not dependent on anyone.
Medium scale industries in produce less product, sales less, dealing less (Bigné Alcañiz, 2016).
They have limited source of capital and Limited customer base. Medium scale industries have
less external inputs like friends Network and professionals.

There are several example of medium scale industries and which are mentioned below:
Aluminum door and window manufacturing , talcum powder production, making of paper bags,
LED light manufacturing, manufacturing of furniture, leather product, manufacturing and many
more.
Micro Business
Micro Business Company is generally described as a small scale business in which the employee
number is 9 or less than 9 in having a balance sheet or turnover which is less than a certain
amount. In other term a business which operates on a very small scale level (Derguech, Bhiri,
and Curry,2017). Micro business faces several types of challenges as compared to small or
medium sized companies. They have less resources or less financial stability in the market full
stop being a micro business it is become much difficult and harder to get loans from the bank
because of the business size. With the limited resources a company cannot make them effective
and complete their work at the particular time.
There are few characteristics of successful micro business and these are below mentioned:
They are self motivated and self reliant. Also they have a capability to separate a work and their
family life.There much focused on accomplishing in achieving their objectives and targets.The
Micro vision is always seek advice from the experts are professionals.: They are directly operate
by a single individuals they do not have to rely on someone. They have that power to control and
manage their organization accordingly.
There are few example of micro business and which are mentioned below:
Retail merchandising and trading stores, food business, graphic and design, arts and crafts,
agriculture business, canteen ,Money and Finance, and many more.
Large Scale Industries

Large scale industries are defined or refers to those companies which are having extreme large
infrastructure and they have several quantity of raw material (Helms, Loock, and Bohnsack,
2016). Large scale industries have high manpower requirements and large capital needs. They
have fixed assets of more than 10 crore rupees. Large company advert to the factories which
combine at least three features and that is use of machinery employment of wage labor and the
application of of controlling the measures or acts.
There are several characteristics of large scale industries and these are mentioned below:
Bulk buying and selling the large scale industries buying and selling the products in bulk also the
purchase a raw materials in a bulk. Economical production using machinery, the larger scale
company usually apply the latest technology that help in economical bulk production. Large
scale industries mainly involved high and capital intensive industries and resources.
There are few example of large scale industries and which are described below:
Tesco Zara H and M Sainsbury Nike McDonald and many more. They are the example of large
scale industries as they are operate on Multinational level.
TASK 2
Definition of sole trader business
this is a business who has a single owner, in this type of business, owner will receive a
complete amount of profit and will bear a complete loss also, if it will happen and the owner will
have to pay the income tax also. This is the sole trader business or it is also known as Sole
Proprietorship Business.
There are the following characteristics of Sole Trader Business.
This is a single owned business, handled by only one person. In this business, the owner
will have the right to take the quick decision, according to the situation. There is a no limit of
liability, owner will manage it according to himself. There is an absence of govt. Regulations;
owner will manage it according to its situation.
Example of Sole Trader Business
Barbour shop is a complete example of Sole Trader business, in this business there is
only 1 boss etc. 1 owner, who handle complete things like profits and loss, and will run the
business according to himself.
Partnership:

Partnership is that form of business in which two or more person group together to start a
business with a contract to share profit and loss with each other. The liability of partners up to
the extent of of there share in the firm.
Characteristics of Partnership:
There are several characteristics of partnership business searches existence of return
deed, sharing of both profit and losses and limited liability (Hrechyshkina and Samakhavets,
2019). The liability of partners in a partnership business is unlimited because a firm is connected
with their owners and not have a separate legal entity that is why any losses born during the
course of business needs to be prepared by all the partners according to their share. They need to
pay their share amount only. Sometimes in case of denial of one partner another partner need to
pay on the behalf.
Example of Partnership:
Uber and Spotify, Gopro and Red Bull, Apple and master Card. These are the
examples of Partnership.
Limited Liability business:
Limited liability business starts form of business where the liability of the members is
limited to the extent of the share of the members in the business (Phan, Mian, and Lamine,
2016). It is considered in different form of businesses because it is a different type of partnership
which involves creation of a company. In limited liability business the organization is a separate
entity.
Characteristics of limited liability business:
The liability is limited in the business, business has its own separate legal entity,. LLP is
attached in the end of the name of the business. It is considered as the most prominent method to
start a business now a days by a person who watches start a business in partnership but with
limited liability.
Example of Limited Liability Business:
In Limited Liability company name start with ABC LLC ( LLC is stand for Limited
Liability business.
Public Limited business:

Public limited company is a limited liability who shares freely sold and traded to the
public with the minimum share of capital and with the letters PLC after their name. The public
limited companies have their own separate legal entity or identity.
Characteristics of public limited company:
They have separate legal entity. The shareholders of public limited company can simply
move or transfer their shares to the public. They have limited liability. The liability of the
shareholders is limited and the shareholders of the company are not liable in any case of losses or
debs which is suffered by the company.
Example of public limited company:
These companies must have PLC of the word public limited company after their
name such as the oil and gas company.
Cooperative
Cooperative is a private business company which is owned and managed by the
individual who use their products supply or services. Cooperative vary in a kind and membership
size and all were formed to meet the particular goals of members.
The characteristics of cooperative
In this they have equal voting rights and separate legal entity. They have democratic
management in their business or in their organization. They are based on the service motive of
their members and the main aim of cooperative is to Cater services to their members and not to
earn profit.
Example of cooperative
finance utility insurance housing and Healthcare Cooperative these are probably one of the most
well known examples.
TASK 3
Business Structure
There are mainly four kinds of business structure which is followed by the any
organization and these are: Functional structure, divisional structure, Matrix structure, and flat
structure. The company TESCO follows the organization structure. In this structure,
responsibilities and positions are separated into several parts in order to ensure that the work will
be done effectively and efficiently.

Affects of Organizational Structure which affect the business productivity:
The organizational structure has give their impacts on performance of the workers, But
Its improve the productivity of the company because in this structure, the workers of the
company work together, communicate together, share their resources. So this will build the
coordination and team work in the company.
PESTLE ANALYSIS
PESTLE analysis is used to identify the external factors which create impact on the
company in context of their growth and development. The PESTLE analysis of TESCO are
mentioned below:
Political factors - Tesco is a retailing company which operates in global world hence it is
is greatly influenced by the Global political factors of different countries these factors include
acts of legislation stability of the country and tax rates of the country and which the company is
operating.
Economic factor - economic factors are those factors which includes all the elements
which affects the economy of the business and the country in which the business is operating.
Being a retailer Tesco faces many problems with the unequal distribution in the economy. As the
company is more affected by demand supply and other factors of economy they needs to take
care of changes in taxation policies or any other economic changes. In spite of having presents in
various countries the company e is dependent on the economy of UK(Lee, Wye, and Lim, 2018).
Social factor - Due to the changes in social trends the demand for the Pack product has
been raised in the UK which affects the business of Tesco in UK. But the increase l health
concern among people decreases the demand for readymade food products. In order to cope up
with the social changes in UK the company started to offer Organic products to their customers.
Technological factors - Improvement in technology positively affects the business of
Tesco as it simplifies the operation in Tesco. Introduction of online business through Technology
increase the business of Tesco as they can provide their products in many parts of the world
without establishing their new Store. Another benefit the company have technological changes
are now the company offers self service to their customers which reduces its labor cost.
Legal Factors: Government policies and laws also create impact on the TESCO. As
there are several laws like minimum pays, in context of human security and safety issues. As

TESCO is multinational company so every nation have different laws and rules so these things
create several challenges for the company.
Environmental factors - With the increase pressure on businesses to address various
environmental issues created by them, Tesco commits to reduce its emission of carbon by 50%
till 2020.
CONCLUSION
From the above mentioned report, it has been concluded that, There are several types of
business which is considered by an individual to start a business. Every business have their own
characteristics and features. Along with this every business different structure to operate their
business effectively. In order to indentify the threats and issues which is connected to the
external factors of the business PESTLE analysis has been conducted in this report. It will help
the company to identify the impacts and challenges of the external forces.

REFRENCES
Books and Journal
Li, F., 2020. The digital transformation of business models in the creative industries: A holistic
framework and emerging trends. Technovation, 92, p.102012.
Kahn, K.B., 2018. Understanding innovation. Business Horizons, 61(3), pp.453-460.
Lewellyn, K.B., 2018. Income inequality, entrepreneurial activity, and national business systems:
A configurational analysis. Business & Society, 57(6), pp.1114-1149.
Bigné Alcañiz, J.E., 2016. Frontiers in research in business: will you be in?. European Journal of
Management and Business Economics (EJM&BE), 25(3), pp.89-90.
Derguech, Bhiri, and Curry,2017. Designing business capability-aware configurable process
models. Information Systems, 72, pp.77-94.
Helms, Loock, and Bohnsack, 2016. Timing-based business models for flexibility creation in the
electric power sector. Energy Policy, 92, pp.348-358.
Hrechyshkina and Samakhavets, 2019. Changing business environment in Belarus. Journal of
Geography, Politics and Society, 9(1), pp.1-11.
Phan, Mian, and Lamine, 2016. Technology entrepreneurship and business incubation: Theory,
practice, lessons learned. World Scientific.
Lee, Wye, and Lim, 2018. Perceived job readiness of business students at the institutes of higher
learning in Malaysia. International Journal of Advances in Agriculture Sciences.