What is a company?

A company comprises an organization or institution, created and formed by a person or group of people, which is dedicated to a specific economic activity to achieve objectives that later become benefits. In addition, to define what a company is, it is necessary to mention the products, goods and services that it offers to its customers and from which it profits.

How companies are classified

There are several types of company and all of them are classified according to the activity or the market to which they are directed, according to their size, according to their creation or their legal form and finally, according to their scope of action. Next, we will see how companies are classified based on these commented descriptions:

  • According to their activity or market: primary sector, secondary sector, tertiary sector, quaternary sector (agriculture, livestock, industry and services)
  • According to their size: large companies, small and medium-sized companies (SMEs)
  • According to its creation or legal form:anonymous society, limited liability company, individual society or cooperatives
  • According to the scope of action: local companies, national companies, multinational companies or transactional companies.

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