Understanding Business Environment: Types, Size, and Scope of Firms

This report provides a comprehensive overview of the business environment, focusing on different types of enterprises, including public, private, and voluntary sectors, and their respective purposes. It details the characteristics of each sector, highlighting the ownership, control, and objectives that differentiate them. Furthermore, the report explores the scope and size of various types of firms, discussing how these factors influence their motives and operations, particularly in the private sector, where the primary goal is to increase turnover efficiently. The analysis includes references to relevant academic literature, emphasizing the co-evolution of multinational enterprises and the institutional environment, as well as the business case for corporate social responsibility.

Business
Environment
(Task 1)

Cover contents
• Introduction
• Different types of enterprises and their purposes
• Scope and size of range of various types of firm
• References

Introduction
It is very essential for each and every company to understand about
their environment in which they are running their businesses. This has
been recognised that different factors are existing in a business
surrounding and used to give a huge influence on overall aspects
associated with units of corporation and its nature, costs of goods,
positioning, arrangement, standards, etc.

Different types of enterprises and their
purposes
On the basis of size and purposes, firms are categorise into three sectors
that are public, private and voluntary. These all are variant from one
another which can be understand by below mentioned points :
• Public sector
• Private sector
• Voluntary sector

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Private sector : This type of venture is totally owned by a single person
or a group of people. There is no role of legal body that is government do
not use to control their commercial activities.

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Scope and size of range of various types
of firm
Every corporation is having its scope as well as size and they set their
motives as per that for the completion of same. The size and scope of
various types of firms are discussed as follow :
Private segment : As explained above such type of companies are
privately owned by single man or more than that. They are having main
motive to increase their turnover effectively by spending less sum of
money.

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References
Cantwell, J. and et. al., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of
MNEs and the institutional environment. Journal of International
Business Studies. 41(4). pp.567-586.
Carroll, A. B. and Shabana, K. M., 2010. The business case for
corporate social responsibility: A review of concepts, research and
practice. International journal of management reviews. 12(1).
pp.85-105.
Cavusgil, S. T., and et. al., 2014. International business. Pearson
Australia.

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