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Question: You have been employed as an assistant business analyst by a large multinational organisation to investigate different types and sizes of business they will have to compete with. They also would like to know how internal and external factors impact businesses.

15 Oct 2022,1:00 AM

 

You have been employed as an assistant business analyst by a large multinational organisation to investigate different types and sizes of business they will have to compete with. They also would like to know how internal and external factors impact businesses. You were asked to write and submit 2,000 words Management Report to the CEO and your report should include the following:

 

Section 1: You are to show an understanding of the different types of companies and how they work.

 

Your response should cover the following:

 

  • Definition, characteristics and example of micro business, small business, medium size business and large size business.

 

Section 2: You are required to explain different companies from sole traders to cooperatives and Limited Liability Partnerships.

 

Make sure, your response includes the following:

 

  • Definition, characteristics and example of sole trader business, partnership, limited liability business, public limited liability business and Cooperative.

Section 3: To consider different business structures and how external factors affect businesses.  

In this section of the report, you are required to:

 

  • Identify different organisational structures and explain how organisational structure affects business productivity.

 

  • Using PESTLE analysis explain how different external factors affect the performance of a business.

Expert answer

 

Definition, characteristics and example of sole trader business, partnership, limited liability business, public limited liability business and Cooperative.

A sole trader business is a business owned and operated by a single individual. This type of business is relatively simple to establish and run, and offers the owner complete control over all aspects of the business. A key characteristic of a sole trader business is that the owner is personally liable for all debts and liabilities incurred by the business. This means that if the business fails, the owner's personal assets could be at risk. A sole trader business can be either unincorporated or incorporated. An unincorporated sole trader business is one where the owner has not registered the business with any government body, while an incorporated sole trader business is one that has been registered with a relevant government body.

 

A partnership is a type of business entity in which two or more individuals (called partners) share ownership of the business. Partnerships are relatively easy to establish and offer the partners a certain degree of flexibility in how they run the business. However, each partner is personally liable for all debts and liabilities incurred by the business, which means that their personal assets could be at risk if the business fails.

 

A limited liability business is a type of business entity in which the owners (called shareholders) have limited liability for the debts and liabilities of the business. This means that if the business fails, the shareholders will only lose the money they have invested in the business, and their personal assets will not be at risk. Limited liability businesses can be either unincorporated or incorporated. An unincorporated limited liability business is one where the shareholders have not registered the business with any government body, while an incorporated limited liability business is one that has been registered with a relevant government body.

A public limited liability business is a type of business entity that is registered with a relevant government body and offers its shares to the general public. This type of business offers its shareholders limited liability for the debts and liabilities of the business. This means that if the business fails, the shareholders will only lose the money they have invested in the business, and their personal assets will not be at risk.

 

A cooperative is a type of business entity owned and operated by a group of individuals for their mutual benefit. Cooperatives are typically formed to provide members with access to goods

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