BSc (Hons) Business Management: Types of Companies Assessment Report

This report, submitted by a BSc (Hons) Business Management student, examines different types of companies, including micro, small, medium, and large businesses. It delves into various business structures such as sole traders, partnerships, limited liability companies, public limited liability businesses, and cooperatives. The report also explores how organizational structure impacts productivity and includes a PESTLE analysis to evaluate the influence of political, economic, social, technological, legal, and environmental factors on business performance. The analysis provides a comprehensive overview of the legal status, structure, and external factors that affect business operations and success, offering insights into the complexities of business management.

BSc (Hons) Business Management with
Foundation
BMP3002
Business in Practice
Assessment 1
Types of Companies
Submitted by:
Name:
ID:
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Contents
Table of Contents
Introduction...................................................................................................................3
Section 1: Types of companies and their different status towards their operations.....3
Section 2: Different companies from Limited Liability Partnerships to cooperatives
and sole traders ..........................................................................................................4
Section 3: Different business structures and external factors affecting business........6
3.1 Determination of different structures of organization and inform how does
structure organisation impact productivity of business ..........................................7
Conclusion....................................................................................................................8
Reference List .........................................................................................................9
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Introduction
Business refers the legal entity which is involved in number of operations related to
the buying and selling of commodity. Business is one of the most important aspect of the
economy which enables the personal as well as the growth of the society. There are different
types of businesses are present in the market having different aims and objectives but the
overall objectives of all the companies is to earn profits from their operations in the market. It
is very important for any entity of the market that they are having any legal status which
enables the management to operate their business in effective manner. There are number of
business structure are present in the market such as sole trader, partnership and many more.
All these structure of the companies provides effective legal existence to the business which
helps them to operate their business without any restrictions. This report is based on the
classification of companies in term of small medium and large which helps to established
effective judgement.
Section 1: Types of companies and their different status
towards their operations
Micro business:
It is related to those types of businesses of the market under which the
number of employees are less than 10. The scope of operations are very low in this
type of businesses. It is generally refers to those types of organisations which are
new in the market and starts their operation only few days before (Ahmad, Omar and
Quoquab, 2020). These types of organisations are not able to take the big projects
because of few employees and also the lack of experience. The scope of growth in
these types of organisations are very high as the management of these companies
always try to find the opportunities from the market. The employees of these
organisation should have strong vision about the growth which helps the company to
achieve their growth in the market.
Small business:
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It is related to those type of business which is owned and managed by private
individual. The status of small business are depend upon the number of employees
present in the organisation. The scope of business are limited in these type of
business as compare to the regular size organisations of the market. It is important
for the management to operate their business in effective manner.
Medium size business:
It is related to those type of business under which the assets, revenues and the
number of employees are less than the prefixed threshold limit. The definition of
SME are vary from country to country and the limit of these factors are set by the
government as per their own will (Almeida, Avalone and Fettermann, 2019). The role of
these types of organisations are very high for the economy as the number of these
companies are very high which provides higher revenue as compare to big size
organisations of the country.
Large size business:
It refers to those category of the organisation under which those companies
are exists which perform extraordinary in the market and the scope of their
businesses are very high as comparison to the normal size business. The number of
employees are very in these types of organisation as the business of the
organisation are not limited to single nation of the market.
Section 2: Different companies from Limited Liability
Partnerships to cooperatives and sole traders
Sole trader business:
Sole-dealer is that commercial enterprise owning easy operating shape and all
sports which might be achieved Sole-dealer is the only who takes all choices of
commercial enterprise. The shape this is mounted of sole-dealer commercial
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enterprise is without difficulty easy with short decision-making in addition to there's
much less set-up cost. There are a few demerits additionally which might be
associated with sole dealer as being the proprietor of commercial enterprise, there's
ownership of limitless legal responsibility in addition to capital elevating is restricted
and there are excessive obligations and obligations to perform.
It is one of the important and valuable structure of the business which enables the
owner to take quick decision but there are some restrictions and negative aspects
are present in this type of organisation which enables the management to operate
their business in effective manner (Baker, Kumar and Pandey, 2021). One of the
important demerit of this type of organisation is that the scope of funding and capital
are limited in these type of organisation which disables the organisation to increase
the scope of their business.
Partnership:
Partnership may be referred to as that deal or settlement in among or greater human
beings or groups that comply with control and function for success of sure
predetermined desires and objectives. In partnership, there's sharing of liabilities and
earnings in among all members. Partnership additionally has sure blessings in its
clean formation, inside its flexibility, sharing of danger and paintings department in
among all its companions and there's greater scope growth with it. There are a few
risks related to it because it possesses limitless liabilities with lengthy and
complicated decision-making, involvement of mutual variations and additionally of
uncertainty
It is one of the valuable structure of the business which enables the business to
reflects higher growth. There are number of positive aspects are present which
makes the concept of partnership desirable and one of them is that the level of
capital are high in these type of business as the number of owners are more in
comparison to the sole trader. There are also some negative aspect are present
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which disables the company. The chances of disputes are high in this type of
business which increases the fear of dissolution of partnership.
Limited liability business:
Limited organization may be referred to as that commercial enterprise business
enterprise in which the stakeholders own constrained legal responsibility. There is
described felony shape pointing out constrained legal responsibility of its participants
with the stake of its organisational participants (Cosenz and Noto, 2018). Limited
organization incorporates private legal responsibility this is minimal which means that
worker isn't always chargeable for agreement of deficit of commercial enterprise from
their very own private assets. There is even separate identity of the proprietor from
that of commercial enterprise and proprietor can own tax loose income. There are
many demerits of it, because it has regulations with complicated accounting
structures and are time ingesting and commercial enterprise installation is likewise
complicated. Analysing of all sorts of commercial enterprise sorts is essential after
which its adoption is there for overall performance of all working features with its goal
to attain predetermined dreams and objectives.
Public limited liability business:
It is related to those type of businesses which are allowed to issue their share
in the market and allotted to the general public by the law of land. It refers to those
organisation which can use the funds of public and use them for the operations of
the business. The scope of business of these type of organisations are high as
compared to the other organisation so the requirement of the funds are also very
high. These funds are arranged with the helps of different factors such as private
financiers, banks and share capital which is one of the most important and valuable
factor for the organisation.
Cooperative:
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A cooperative is an association of persons (organization) that is owned and controlled by the
people to meet their common economic, social, and/or cultural needs and aspirations through
a jointly-owned and democratically controlled business. Cooperatives may be created for
some of one-of-a-kind motives or to fulfil some of one-of-a-kind needs: at the same
time system goods, break up costs, break up manage over work, shopping power ,
shared employees, shared wages, etc. Cooperatives are democratic companies
managed through their members, who actively take part in putting their guidelines
and making decisions.
Section 3: Different business structures and external
factors affecting business
3.1 Determination of different structures of organization and inform
how does structure organisation impact productivity of
business
An structure of organization precise how act such as coordination, supervision and
task allocation, are manageable toward the accomplishment of organizational goals
and objectives. The structure of the organisation impacts the actions and the
strategies as the number of resources are operated in well established manner.
There are different types of business structures are present in the market and the
brief discussion related to some of these are given below:
functional structure
A purposeful shape is a kind of commercial enterprise shape that organizes a
organization into one of a kind departments primarily based totally on regions of
knowledge. These departments function purposeful gadgets and are overseen with
the aid of using purposeful managers or branch heads. Employees in functionally
dependent corporations are employed for his or her knowledge in a selected skill.
They hardly ever stray outdoor in their position to assist with the paintings of every
other branch (Hrustek, Furjan and Pihir, 2019).
Divisional structure
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A divisional organizational shape is a device wherein a corporation segments its
personnel primarily based totally on merchandise or markets, instead of their
process roles. Some agencies have marketing, income and communications
departments, even as a divisional agency has groups devoted to a selected place or
product.
3.2 How different external factors affect the performance of a
business – PESTLE Analysis
It is related to those framework which is used by the organisation to evaluate the
impact of different external factors on the business of the organisation.
Political :- This factor of the analyses is related to the impact of different policies
and guidelines of the government on the business of the organisation. Different types
of international relations are came under this factors as the positive and negative
impact of these relation hit the business in different manner.
Economic :- It reflects the impact of different economical factor on the operations of
the business. There are number of economic parameters are present in the market
such as deflation, inflation, GDP and many more (Ivanovich, 2020). The evaluation of
impact of these factors are very important as they enables the organisation to
develop effective strategies for the business.
Social :- The social factor of the PESTLE analyses is related to the effects of culture
and tradition on the business of the company. It is very important for the
management of the organisation to analyse the impact of these factors effectively so
that it becomes easy for them to make their product successful in the market. If the
range of products of company promotes the culture of customers then it becomes
easy for the management to attract number of employees towards them.
Technological :- There are different types of new and advance technologies are
developed in the market which are having serious impact on the business of the
organisation (Lee and Jung, 2018). If the management of the organisation applied
these technologies in their organisation then it become positive for the promotion of
productivity and effectiveness of the organisation.
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Legal :- These factors have both external and internal sides. There are certain laws that
affect the business environment in a certain country while there are certain policies that
companies maintain for themselves. Legal analysis takes into account both of these angles
and then charts out the strategies in light of these legislations. For example, consumer laws,
safety standards, labor laws, etc.
Environmental :- These factors include all those that influence or are determined by
the surrounding environment. This aspect of the pestle is crucial for certain industries
particularly for example tourism, farming, agriculture, etc. Factors of a business
environmental analysis include but are not limited to climate, weather, geographical
location, global changes in climate, environmental offsets, etc (Moşteanu, Faccia and
Cavaliere, 2020).
Conclusion
From the above report, end may be made that enterprise is entity having criminal
identification that is concerned in acting numerous operations ensuing in proper
course and success of predetermined desires and objectives. There are many sorts
of enterprise inclusive of sole-trader, partnership and lots of others. It is important for
the enterprise to pick great desirable enterprise layout with a purpose to manual and
assist to function in proper course. Maintenance of enterprise shape is vital for an
agency because it facilitates in taking powerful decisions.
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Reference List
Start writing here
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family involvement in business and innovation capability. Journal of Family
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Baker, H.K., Kumar, S. and Pandey, N., 2021. Thirty years of Small Business Economics: A
bibliometric overview. Small Business Economics, 56(1), pp.487-517.
Cosenz, F. and Noto, G., 2018. Fostering entrepreneurial learning processes through Dynamic
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Fourth Industrial Revolution: Focusing on Business Model Innovation. Indian
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Zaar, S., Van den Bossche, P. and Gijselaers, W., 2020. How business students think about
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