Types of companies – What is it, definition and concept

The types or classes of companies are the different classifications that can be made of a company.

Listing the types of companies can be an almost endless task. We could make a classification of companies based on the hair color of the boss or one of the employees. However, defining the different types of companies is an exercise whose main objective is to separate the wheat from the chaff.

In other words, we are interested in knowing based on what characteristics we can distinguish different types of companies. And, of course, that these characteristics are useful to carry out economic analyzes of different areas.

For example, we could ask ourselves, are we interested in classifying companies based on the number of employees? Of course, this would be a way of discerning companies according to their size. And even more so, so we could compare the size of the companies in different countries. Consequently, we could study the structure of the companies.

Another example could be to classify companies according to the sector to which they are dedicated. This way we will know how many companies are engaged in the manufacturing sector, how many are engaged in tourism or the agriculture sector. Or even by market capitalization. In this sense, in Economipedia we have a ranking with the largest companies in the world:

Types of companies

Since, as we have already said, what interests us is to carry out different classifications, we are going to cite the main ones:

  • According to the size:
    • Number of employees.
    • Amount of assets.
    • Billing.
  • Activity carried out:
    • They produce goods.
    • They offer services.
  • Distinguishing geographical area:
    • Local.
    • Regional.
    • National.
    • Multinational.
  • Economic sector to which they belong:
  • Company ownership:
  • Legal form:
    • Individual or self-employed entrepreneur.
    • Limited society.
    • Anonymous society.
    • Community of goods.

Can more classifications be added?

Of course, we could discern between other types of companies. For example, one that does not appear, but that could be used in an economic analysis, would be companies by number of salaried employees.

In the previous classification we have cited a type of company by number of employees, however, not all employees have to be salaried. It would be interesting, therefore, to distinguish between companies with more than a certain number of employees, from those that do not.

In short, the scheme offered is a theoretical framework as a reference to know the main types of companies. In this way, different studies can be approached taking into account its objective.

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