Forms and types of company

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* Concept

* Características

* The combination of

* Business Forms

* Types of companies

* Company Structure


The company is an economic organization designed to produce goods, sell them and make a profit. It is the hub of production, at least in its contemporary form, because it is done through the entire production process.

Institution or operator who makes decisions about the use of factors of production for goods and services offered on the market.

The entrepreneur is the person providing the capital and carried out together with the functions of management: organizing, planning and control.


It is clear that great importance for productive economic activities, but he pointed out, these three cases:

* 1. It brings together the three main factors of production: capital, labor, and nature, isolated, nothing or very little meaning.

* 2. The company produces more expensive than a particular isolated, because it concentrates the supply and demand, raw materials purchased in bulk and cheaper and are in condition to sell at a lower price, just because the bulk of production.

* 3. It allows a more intensive use of labor power and means of production.


* A) By-profit, it occurs only with the desire to make money, and obtain a profit, benefit or profit.

* B) On the commercial end, which is to produce goods for the market, that is to be sold.

* C) responsibility, also called hazards, that the company is solely responsible for the running of the institution. There may be profit or loss, success or failure, all is loaded or the sole responsibility of the company, which must address all of these contingencies. In addition, the company must respond to society and to the state for the quality of their products, because if these are bad or fraudulent must suffer the burden of disgrace, and the punishment of the law.

The combination of

In every enterprise requires three actors: capital, labor and nature, which can be combined in three ways or modes. What are three ways to produce.

* A) Producer self.

When concentrated in one person the three agents or factors we have mentioned. If d is the farmer, owner of the land he farms with his own efforts and with tools, seeds and also owned capital.

* B) semi-Producer

When no one owns any of the factors of production, then it must be ordered from a third party. This is the case of who owns land and capital, but no labor, or who have labor and land but not capital.

* C) Business.

That is the person in charge of combining together, guide and organize into a harmonious whole scattered the three factors of production, thus creating an economic entity capable of producing the best conditions: the company.

Business Forms

The company, depending on who is the employer, may be:

* A. particular company.

Or private call is one that is constituted with private capital, managed, directed or controlled by their owners, and whose purpose is purely profit and commercial. The employer has full freedom of initiative, interest cautious business, sparing no sacrifice, and bear all the responsibility on the organization, development and future of the entity. It can take the form of partnership, limited partnership or corporation.

* B. State Enterprise.

Is one that belongs to the state, a municipality or other public corporation. This consists of public funds belonging to the nation through its organization, administration and other services are provided by public employees, and its purpose is not profit but purely for the public. You can take the following forms:* State enterprise operated directly by state agents.

* State Enterprise gifted in financial economics, whose expenses called somewhat dependent on the budget in general, is by its own means, but in case of loss or deficit recourse to state aid. This is the case of railways operated by the state.

* State company with full autonomy governed itself through a board, whose rules prescribed by law.

* Grant, when the state refuses to take directly to the company on its own, and gives a private contractor, but by looking some state intervention. Pointing to a fee, reserving a portion of the benefits and limiting the duration of the concession.

* Advantages.

The state company, they say, is desirable because it prevents the exploitation of society by individual companies, tends to the welfare of the community, and is a great resource for the nation. And it’s inconvenient, on the other hand is added, because the state is bad businessman, is prone to a lush and harmful bureaucracy (which absorbs much of the budget), no control in their operations, (which allows for the fraud and embezzlement ), the services are not efficient, the staff is inattentive (usually appointed by political favor), lack the stimulus of personal interest that brings into play all resources are to carry on with the company, is routine, because their bureaucratic structure and mechanics are less permeable to the new changes and technical improvements.

However, it can be said that the state company is not bad in itself, but it depends on how this organizes and guides, and the kind of men who run the ship of state.

Types of company

Types of companies that can be as Natural Person

Sole Company In this case the owner of the company or business takes the legal capacity of the business, ie assumes the rights and obligations in their personal capacity, and unlimited.

This implies that it assumes responsibility for the obligations that the company can catch, and warrants to the estate or personal property may possess.

A sole proprietorship has a single owner or owner called micro entrepreneur, which is responsible for managing the business, examples of sole proprietorships are given in the case of pharmacies, bodegas, restaurants, etc.

Types of companies that may be a legal person

When starting a business as a legal person, the type of company that we choose are:

Individual Limited Liability Company (EIRL) * In perhaps the company should have a single owner or the owner, named holder. Unlike the sole proprietorship, the obligations are limited to the assets of the company.

* Operates under a business name and / or denomination. After the name, must contain the initials EIRL, for example, “EIRL Diamond Jewelry.”

* The control elements are the owner (owner or owner), which is the highest organ of the company, and management (the body responsible for the administration and representation of the company) that can be made by the holder himself or another person.

General Partnership (SC) is a business association consisting of more than one person or partner, committed to participate in the management of the company with the same rights and obligations. Obligations relate only to the capital contribution they have made.

* Generally consists of homogeneous groups united by common interests, there exists a family relationship and trust.

* Works under one name, has no name. The name may be made by the names of all or only one or some of its members, in the latter two cases, adding the initials SC, for example, Arias and SC Villa

* The capital consists of shares, not shares.

* The control body is made only by the General Meeting of Members, not the Board or Management. All partners will manage and represent the company.

Limited partnership or limited (S in C) * Company comprised of more than one partner, where also only limited obligations to net worth that has the company.

* Works under one name, has no name.

* The capital consists of shares or actions (partnership limited by shares).

* The control body is made only by the General Meeting of Members, not the Board or Management. The general partners manage and represent the company.

Limited Liability Company (SRL) * Legal Company consists of a minimum of 2 partners and a maximum of 20, where also the obligations are limited to the capital.

* Operates under a business name and / or denomination. After the name should follow the acronym SRL, for example, “SRL Taco Restaurant.”

* The capital is represented by shares (no shares) equal, concurrent and indivisible, which can not be incorporated into titles and values.

* The control parts are made by the General Board and Management, not the Board. The administration and representation is provided by one or more managers may be members or not.

Sociedad Anonima (SA) * It is called anonymous because it is not unknown who is the holder or owner of the shares, but because such actions are negotiable and transferable, they can be endorsed or negotiable again and again, but will always know who the owner of the shares.

* Operates under a business name and / or name, followed by the initials SA

…. The concentration and the law of variable returns.

Concentration is a modern variant, which is seen in the trade and industry to replace the individual and small production by large companies with unique address. the aim is to produce more, at lower cost and with better results. Under this type of production is possible to see more clearly how the law operates variable yield, which offers two modes:

* A) lay principle of diminishing returns.

It was formulated in 1848 by the English economist John Stuart Mill, applicable in principle to agriculture has been understood in other fields of industry, it can be stated as follows: “under a particular state of the art and all being equal things, the growth performance is generally proportional to the growth of expenditures and working capital. begins to be considerable to decrease and then tends towards zero. ” or more simply, the extent to which performance is below the increase in the means of production. This means that a ground or industry in which capital and labor used in proportion 2,4,6,8,16,32 … production will yield 2,6,10,13,15,14,12 … or is that initially, the performance increase and then decrease.

* B) lay principle of increasing returns.

Applicable to all industries, to a greater or lesser degree, is that performance increases as production increases, because it decreases the cost of production, making it feasible to sell at lower prices in large scale and therefore more profitably. If a company produces and sells a thousand cars at a price of $ 80 000 each, would sell to 60 thousand if produjese, say 10,000 cars and have more sales, and therefore more profit.

Company Structure

Usually there are four models of company structure:

1.3.1.-hierarchical structure:

The chief has authority over subordinates. This ensures the effective management that ensures the control authority and avoids the confusion of responsibilities. It is the principle of unity of direction.


In this kind of unity of command structure is broken, to a certain level, everyone involved can get control of different authorities, each of which assumes a different role. This structure gives rise to coordination problems. It is the principle of specialization of tasks.


For operational managers, who have authority over their subordinates, given cells of staff, the staff. These cells are composed of experts who can propose and suggest, but do not decide or lead any operation. It is the beginning of the two lines, which is to combine the advantages of hierarchical authority and functional competence.


It is a decentralized autonomous department. The heads of these departments negotiate the objectives and take responsibility for results. It is the principle of management by objectives, the responsibility is on departments and the decentralized structure type.


Leader is a concept of political theory, is one able to influence others but not necessarily have formal authority to do so. Here we can say that the leader does not have a management role is an informal leader, as can be: the older person or a person with high professional competence, ie someone that others will recognize the ability to guide them.

An administrator on the other hand, has the formal authority, the decision is a governor, a council or a business owner, however, this alone does not mean it is the leader of a group, you have the authority and power, but not necessarily the capacity to lead, therefore, is desirable for the manager to know to become a leader, or the organization you work for, treat it as such.

The administrator is the person responsible for planning, organizing, directing and controlling activities within an institution, optimally manage material and human resources, financial and technological resources that are entrusted with the aim of achieving the goals that the institution previously set.


Lead by goals.

* Calculate risks to choose alternatives to long term (strategic thinking).

* Be able to organize integrated teams, in which all measure performance and outcomes against the objectives of the organization.

* Be able to communicate information and motivate all members of the organization, responsible participation.

* To see the organization as a whole


It is difficult to define: it means different things to different people. Some identify him with functions performed by employers, managers or supervisors, others refer to a particular group of people. For workers, management is synonymous with the exercise of authority over their working lives …

Skills of a manager

Authors such as, Garcia and Martin (1980), Hersey and Blanchard (1977), Terry and Franklin (1986), agree that we need three types of skills to effectively develop the managerial work. These skills are:

* Technical skill: it involves the ability to use technical knowledge, methods, techniques and resources needed for specific tasks. Involves specialized knowledge, analytical skills, ability to use tools and techniques. Can be obtained through formal education or through personal experience or others.

* The human ability: the sensitivity or manager’s ability to work effectively as a member of a group and gain the cooperation within the team he leads.

* The conceptual ability: is the ability to perceive the organization as a whole, recognize its elements, interrelationships between them, and how changes in one part of the organization affect or may affect other elements.

What is it

process of creating, designing and maintaining an environment in which people, to work or working in groups effectively reach selected goals.

Management is a science that has an objective study that organizations are trying to achieve his explanation, understanding and the search for their whys. To achieve this goal as an essential tool applies the scientific method and through it develops theories, models and assumptions about the nature, dynamics and evolution of organizations.

Administration is an area or business sector, and that the mission of those responsible for different tasks is to manage the company resources have been made available, so, it appears that the administration is much more to do certain tasks and , likewise, comprises the entire company.

Management types

International Management:

It focuses on international companies operating in foreign countries. Try administrative issues relating to the flow of people, goods and money with the ultimate aim to better manage situations across national borders estadounidenses.La Management Survey:

Is defined as the study and analysis of management in different environments and the reasons why companies get different results in different countries. The administration is an important element for economic growth and improved productivity. Management By Objectives:

It is practiced worldwide. However, despite their extensive applications, is not always clear what it means. Some are considering an assessment tool, others saw it as a motivational technique, and finally some people consider it as a device for planning and control. In other words, definitions and applications of management by objectives vary widely, and therefore it is important to emphasize the concepts developed thus can be defined as a complete management system that integrates many key administrative activities systematically, consciously directed towards the effective and efficient achievement of organizational goals and individual. Body In The Technology:

. Within each company coexist executed task, the theory that provides the workflow methods and operational processes and all the machinery used to perform the task. This can be very wide (making toys, process information and news to spread through newspapers or television, carrying loads or people, manufacturing parts and components, perform surgery on people, teach students and hundreds of activities or combinations of these). However, when a company performs some specific task and applies a way to run, technology affects every person and event items in person.