A business company is a legal organization formed to engage in commercial, industrial, or professional activities. Its main goal is usually to make profit, though some companies also focus on social or charitable objectives (non-profits).
🧱 Types of Business Companies
1. By Ownership Structure
| Type | Description |
|---|---|
| Sole Proprietorship | Owned and run by one person; simplest form |
| Partnership | Owned by two or more people who share profits and responsibilities |
| Limited Liability Company (LLC) | Combines flexibility of a partnership with limited liability like a corporation |
| Corporation (Inc.) | A separate legal entity; owned by shareholders |
| Cooperative | Owned and operated by a group for mutual benefit |
| Joint Venture | Temporary partnership between companies for a specific project |
2. By Business Activity
| Type | Description |
|---|---|
| Manufacturing | Produces goods from raw materials |
| Service | Offers services (e.g. consulting, repair, banking) |
| Trading | Buys and sells goods (e.g. wholesale, retail) |
| Agricultural | Involved in farming, fishing, forestry, etc. |
| Financial | Banks, insurance companies, investment firms |
| IT / Tech | Develops or sells software, hardware, or platforms |
3. By Size
| Type | Number of Employees (Approx.) | Notes |
|---|---|---|
| Micro | 1–10 | Small-scale, often local |
| Small | 11–50 | May serve a specific region |
| Medium | 51–250 | Often regional or national |
| Large | 250+ | Usually national/international |
4. By Legal Status
| Type | Description |
|---|---|
| Private Company | Owned by private individuals or groups |
| Public Company (PLC) | Listed on stock exchange, open to investors |
| Non-profit Organization | Operates for social or charitable goals |
| State-owned Enterprise (SOE) | Owned and controlled by the government |
🏛️ Examples of Business Companies (Global)
| Company Name | Type | Industry | Country |
|---|---|---|---|
| Apple Inc. | Public Corporation | Technology | USA |
| Toyota Motor Corp | Public Corporation | Automotive | Japan |
| Nestlé | Public Corporation | Food & Beverage | Switzerland |
| Alibaba Group | Public Corporation | E-commerce / Tech | China |
| Unilever | Public Corporation | Consumer Goods | UK / Netherlands |
📘 Essential Business Company Terminology
-
Startup – A newly founded business, often tech-related
-
Enterprise – Another word for a company (often large-scale)
-
Subsidiary – A company owned by another (parent company)
-
Merger – Two companies combining into one
-
Acquisition – One company buys another
-
IPO (Initial Public Offering) – A company goes public on the stock market
-
Shareholder – Person or entity that owns shares in a company
-
Board of Directors – Group overseeing company strategy
-
CEO (Chief Executive Officer) – Top executive manager
-
Revenue – Total income before expenses
-
Profit – Income after all expenses are paid