Company - Term Overview


A company is an economic-social unit, composed of human, material and technical elements, which has the objective of obtaining profits through its participation in the market of goods and services. For this, it makes use of the productive factors (labor, land and capital).

Companies can be classified according to the economic activity they develop. Thus, we find companies in the primary sector (which obtain resources from nature, such as agriculture, fisheries or livestock), secondary sector (dedicated to the transformation of goods, such as industrial and construction) and tertiary sector (companies engaged in the supply of services or commerce).

Another valid classification for companies is according to their legal constitution. There are individual companies (belonging to a single person) and corporate (made up of several people). In the latter group, the companies in turn can be anonymous, limited liability and social economy ( cooperatives ), among others.

Companies can also be defined according to ownership of capital. Thus, we find private companies (their capital is in the hands of individuals), public (controlled by the State), mixed (capital is shared by individuals and by the State) and self-managed companies (capital is owned by workers ).

Business administration, meanwhile, is a social science that's dedicated to the study of the organization of these entities, analyzing the way they manage their resources, processes and the results of their activities.

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