Business Definition

Below Are Three Different Types Of Companies:


* individual property: this organizational modality establishes that the owner is the only person who assumes responsibility for the business, as well as the results obtained, whether successes or failures. The property individually has the opportunity to exercise any activity, unless the legislature expresses the opposite effect. Although it has some advantages, this model is not convenient for those who want to set up a large company; The main reason is that a bad business can result in a millionaire loss, and in this case, it should be faced by a single individual. On the other hand, this form of ownership is the most adopted by farmers ;

* partnership: it is a business association formed by a minimum of two people who accept the combination of their financial assets, assets, capabilities and their labor. To start a company, it is necessary to sign a partnership agreement, in which it is possible to specify the company’s policy, the percentage of the benefits that correspond to each member, and the duration of the link, among other clauses;

* corporation: was created as a more powerful alternative to individual property and society. In each country, there is a series of mandatory requirements that must be met by anyone wishing to create a corporation; Once these demands of the State have been crossed, it is possible to dictate the statutes.

It is said that a business that operates in a free market economy will obtain benefits whenever it is useful for the community in which it carries out its activities. This is due to the responsibility that exists on the part of the company towards the consumer, which represents a fundamental principle.