A Comprehensive Report on the Classification of Company Types

This report provides a comprehensive overview of different types of companies, categorizing them by size (micro, small, medium, and large) and legal structure (sole trader, partnership, limited liability, public limited, and cooperative). The analysis uses Tesco as a case study to illustrate these classifications. The report further examines the significance of organizational structure, including line, project, and matrix structures, and their impact on business operations. Finally, it explores the influence of the external environment, encompassing political, economic, social, technological, legal, and environmental factors, on business corporations. The report concludes by emphasizing the importance of selecting the appropriate organizational structure and understanding external factors to achieve profitability and long-term success. This report is contributed to Desklib, a platform offering AI-based study tools for students.

Types of Companies

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
TASK 3............................................................................................................................................1
CONCLUSION................................................................................................................................1
REFRENCES...................................................................................................................................1
REFRENCES...................................................................................................................................2

INTRODUCTION
Organizations are the way which helps in fulfilling the basic needs of the human being. There are
various types through which an organization can incorporate. To understand this concept Tesco
has been taken. This report has been defining the systematic classification of the organization
based on their size. As well as types of companies based on a legal structure in which an
organization can be registered. It also defines the significance of organizational structure and the
impact of external environment on Business Corporation.
TASK 1
Explanation of different types of companies on the basis of size.
There will be various type of organisation depend personal in which they want to run their
organisation following are the types of companies based on their size.
Micro business: Organization don't have as much of financial resources and other essential
factors which help in running a business at the large area and then personal register their
organisation is micro organisations in this personal invest 10 million to 50 million there will be
towards the employees work within the micro-business organisation Safer codes are registered as
the micro business organisation which provide software business services to their client.
Small business: It includes those organization in which an organization invests 1 million but not
more than 100 million. Employees are engaged less than 10. Ekos Global is suited and run a
business as a small organization. It’s very easy too registered as a small organization and easily
organization can exist without fulfilling any legal norms.
Medium size business: Theses considered as those business organization in which they invest
100 million but not more than 250 million. It provides operational flexibility and low cost of
labour. This will use in reducing poverty reduction as well as useful inflexible business activities.
A raw stream is one of the most popular organizations of UK. This is run their business as a
medium-size organization (Marcus, 2020).
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Large size organization: Theses are considered an organization which required more than 250
million investments. It is a large business corporation which more than 100 employees are
engaged in running business activities. Tesco is registered as a large scale of organization ad it
runs a business in the international market. More than 15000 employees are engaged with this
organization.
Particular Micro business Small business Medium size
business
Large size
organization
Investment Business
organization
which require
investment of 10
million but not
more than fifty
million (Jiménez
Saelices, and
Capron, 2018).
Investment is
required ten
million but not
more than
hundred million.
In this
investment is
required more
than of hundred
million and not
more than two
fifty million .
In large
organizations
more than of two
fifty million
budget is
required for
register as large
business size
organization.
Number of
employee
Less than 10 More than 10 but
less than 50
More than 50 but
less than 250
More than 250
number of
employees
Example Safer codes Ekos Global Raw stream Tesco
Characteristics This is easy to
formulate and
easy for exist as
well as it does
not require huge
source of
resource for run
business activity.
These types of
corporation is
comparatively
require capital.
They work in
effective manner
with minimum
source of
resources.
It is considered
as those
organization
which have
minimum
number of
employees they
have large area
of business and
work in effective
Large size of
organization
have large capital
resource as well
as complex
business
activities theses
are also directly
related with
complex business
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manner. practice. These
type of
organization
have large
number of
employees as
well as their
market also
spread in wide
market area.
They also have
high rate of
profitability rate.
TASK 2
Brief description regarding types of organization on the basis of legal norms.
Sole trader: This type of organization is control and run only by one person thus is known as a
sole proprietorship. It is one of the easiest methods through which personals enter the
competitive business environment. However, they are facing a high level of risk as well as
insecurities. Due to This type of organisation need not require hi capital this is considered a
method which easily provides resources as well as Monopoly in the market however they
face a higher rate of competition within the market. Safer codes are formulated as sole
proprietorship within the economic market. As they don’t have sufficient capital to invest a
large amount of capital. They get all the benefits of being registered as a sole proprietorship.
Partnership: When two more than two people agrees to start a business in which they share the
profit as well as liabilities together it is known as partnership business this type of
organisation is usefully effective. It is considered as those organisation which liability of
partners is unlimited however the share experience as well as their investment which helps
in providing on effectively running a business one of the best methods of run business. Ekos
Global is registered as a partnership firm to run its effective business policies in the market.
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Limited liability business: This type of organisation is part of partnership however in this type
of organisation liability of partners of members are limited to the share with the held or
capital they invest within the organisation it is the modern method of running organisations
business in which liability of each member is limited. Raw stream is registered as limited
liability.
Public limited: It is considered as those organisation which register as a public company and in
which government held more than a 51% of shares government the owner of this type of
organisation thus all the policies procedure and business activities done according to the
decision of government authorities they are directly controlled and managed by government
and listed as the public organisation they have large resources as well as flexibility within
the organisation they can easily get financial assistance unable to maintain their strong
position within the market as they have direct support by the government (Cojocaru, 2017).
Cooperative: Corporation is treated as that organisation which run their business at the
international market they can be listed as private as well as public limited organisation
however they are invested capital, as well as several employees, is as comparatively large
than other organisations. Tesco has been registered as a public limited organization as they
have all the essential qualities which a public organization have. They got perpetual
succession as well as a separate legal entity. run its business in the international market and
is registered as a cooperative organization.
Tesco, this organizing has a large source of financial resource and on the other side, this
organization have limited liability of their shareholders.
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TASK 3
Impact of organization structure.
The term organisation structure is defined as structural which use to represent responsibility as
well as the authority of each department and work within the organisation. By formulate
organisational structure management department able to distribute work authority on the
basis of skills and abilities of personals.
Line organization structure: This is structure is also known as a hierarchical structure in which
power authority flow within one direction, which means top to bottom. These factor of an
organisation will be circulating. These orders and each manager and their department need
to away with this order if they are not fulfilling the requirement of director then they will be
liable for punishment it brings a strong relationship between employee and their team by
specialised their work it is encouraged in high quality of work.
Project organization structure: In this type of the structure management department distribute
responsibilities based on department which include financial product marketing as well as
the research department. This type of organisation structure is generally used by those
organisation to which deal in various sectors in the field of business this type of structure
useful in fulfilling needs of the customer as well as it is comparatively less risky and flexible
organisation structure (Velleman, Clark and Tonniges, 2018).
Matrix organization structure: It is a form of classical structure in this type of structure
employees have flexibility that they can move from one department to another based on it is
also known as Matrix organisation. This is considered a flexible organisation structure as
employees wearing from employer to employee in which employee has the opportunity their
skill.
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Effect of external environment on business organization.
External environment: These considered as those factors indirect impact on business
organisations policies as it is there to recognise these elements technique has been used
Following are the external environmental factor.
Political: It includes those elements regulated by government authorities that means monetary
policy and fiscal policy as well as legislation and rules ordered by the political authority
regarding custom duty and legal duties. The political environment of the UK has been
stabilised due to British agreement organisations not able to run their business in European
countries in an effective manner as they did before this agreement. Tesco profitability rate
directly impacts due to political issues arises between European countries.
Economical: These consider those elements impact on business corporation’s demand and
supply. At present time organisation face economical crisis due to the pandemic as fewer
critic issues thus the rate of the taken loan is high as well as it directly impacts on the
supplier sector thus the production rate is decreasing. Tesco is not able to invest with
another market due to adverse impact of economic factors.
Social: Organisation is run their business in social environment it is very essential to maintain
and build strong relations between various social groups thus it helps in the business for long
term purpose Tesco able to contribute towards social responsibility build a positive
relationship with social groups that even though in this pandemic period Tesco able to
maintain their position within the market.
Technological: Those elements which are related with advance Technologies is considered as
technological factors which help in run business effectively and easily at present and this
technology has been used Tesco by applying digital marketing platform as well as advanced
technology they can easily contact with their customers which help in building strong
relationship these factors are positively and favourably for an organisation.
Legal: means which are related with a formulation of legal laws are considered as legal factors it
includes law relating with test accounting standards Companies Act employees related law,
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as well as law related with fundamental of rights due to high rate of taxes as a less restriction
a garden various countries, is not able to maintain their profitability rate (Kolios, Read and
Ioannou, 2016).
Environment: Organisations are built from sources of environmental natural elements are
included in mountains natural elements seasonal variations all are considered as
environmental factors Tesco not use those products or raw material which may be hazardous
for environment and they also contribute towards environment and pollution-free
environment policies. However due to the impact of a covid-19 pandemic the whole
structure of the organisation has been changed as they suffer from losses the environmental
factor and not in a favourable condition for the organisation.
CONCLUSION
From the above analysis, it has been concluded that individual can able to invest their
money in various types of an organization according to the availability of a resource. Limited
liability, partnership, sole proprietorship and corporation each have their benefits and drawbacks.
A personal need to select which option through which they can attain profitability thus thy need
to implement effective organization structure. They also focus on the external environment factor
as they provide a source of income to the organizations.
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REFRENCES
From books and journals
Marcus, M., Indech, G., Vardi, N., Levy, I., Smith, A., Margel, S., Shefi, O. and Sharoni, A.,
2020. Magnetic Organization of Neural Networks via Micro‐Patterned Devices.
Advanced Materials Interfaces, 7(19), p.2000055.
Jiménez Saelices, C. and Capron, I., 2018. Design of Pickering micro-and nanoemulsions based
on the structural characteristics of nanocelluloses. Biomacromolecules, 19(2), pp.460-
469.
Cojocaru, C., 2017. SOLE TRADER UNDER THE ROMANIAN LEGISLATION. In 4th
INTERNATIONAL MULTIDISCIPLINARY SCIENTIFIC CONFERENCE ON SOCIAL
SCIENCES AND ARTS SGEM 2017 (pp. 447-454).
Velleman, S. G., Clark, D. L. and Tonniges, J.R., 2018. The effect of the wooden breast
myopathy on sarcomere structure and organization. Avian diseases, 62(1), pp.28-35.
Kolios, A., Read, G. and Ioannou, A., 2016. Application of multi-criteria decision-making to risk
prioritisation in tidal energy developments. International Journal of Sustainable
Energy, 35(1), pp.59-74.
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