Meaning and Definition of Company

Definition of company

A company is an organization with non-profit that provides a service or to society. From the point of view of the economy, a company is responsible for the demands of the market. To achieve its objectives this coordinates the capital and labour and makes use of passive materials such as technology, raw materials, etc.
Depending on your activity, enterprises are classified as commercial, extractive, and industrial service companies; According to its dimension, microenterprise, small enterprise, midsize or large enterprise; According to its legal form, at individual, corporate or cooperative enterprises; According to the ownership of capital, in public, State or mixed enterprises; and finally, according to the place where they act, enterprises are classified into local, regional, national or multinational companies.
The origin of the companies as it conceives them today must trace at key moments in the development of capitalism, especially in the 19th century, with the industrial revolution and the dissemination of the ideas of Adam Smith. This time coincides with the first work as manage and organize a company in a more systematic way.
The company has an extremely important role in the development of society in general. In addition to generating employment, supplies goods and services satisfying needs in general, credits encouraging investment and the possibility of purchase and makes known continuously useful products through advertising. However, all these possibilities only take place in a market economy.
The State must ensure an appropriate environment so that the company develops in so far as it complies with its social functions. In this sense, they must facilitate investment, provide legal security and have an active role in times of crisis by injecting liquidity into the market. It is important to understand that while the purpose of a company is the non-profit, the benefits to society are always higher.