7 Types of Companies You Should Know
If you are interested in starting a business or working for one, you might want to know what are the kinds of companies that exist. In this article, we will explain the main types of companies and their characteristics, advantages and disadvantages.
A company is a legal entity that engages in economic activities with the aim of making profits. There are different ways to classify companies, but one common way is based on their legal structure. Here are the main types of companies according to this criterion:
1. Sole proprietorship
This is the simplest and most common type of company, where one person owns and runs the business. The owner has full control over the company and is personally liable for its debts and obligations. The advantages of a sole proprietorship are that it is easy and cheap to set up, and that the owner can keep all the profits. The disadvantages are that the owner has unlimited liability, meaning that their personal assets can be seized to pay off the company’s debts, and that the company has limited access to capital and resources.
2. Partnership
This is a type of company where two or more people agree to share the ownership and management of a business. The partners contribute money, skills, or assets to the company and share its profits and losses. The advantages of a partnership are that it allows for more capital and expertise, and that it can benefit from tax advantages. The disadvantages are that the partners have joint and several liability, meaning that each partner is responsible for the entire debts and obligations of the company, and that there may be conflicts or disagreements among the partners.
3. Corporation
This is a type of company that is legally separate from its owners, who are called shareholders. A corporation has its own rights and obligations, and can sue or be sued in its own name. The advantages of a corporation are that it has limited liability, meaning that the shareholders are only liable for their investment in the company, and that it has easier access to capital and resources. The disadvantages are that it is more complex and expensive to set up and maintain, and that it is subject to more regulations and taxes.
4. Limited liability company (LLC)
This is a type of company that combines some features of a corporation and a partnership. An LLC has one or more owners, who are called members, and can be managed by them or by appointed managers. The advantages of an LLC are that it has limited liability, meaning that the members are only liable for their investment in the company, and that it has more flexibility in terms of taxation and management. The disadvantages are that it may have more difficulty raising capital and transferring ownership, and that it may not be recognized in some jurisdictions.
5. Cooperative
This is a type of company that is owned and controlled by its members, who are usually customers, employees, or suppliers of the company. A cooperative operates on the principle of democracy and mutual benefit, and aims to provide goods or services at fair prices or wages. The advantages of a cooperative are that it fosters social responsibility and solidarity among its members, and that it can benefit from tax exemptions or subsidies. The disadvantages are that it may have less efficiency and competitiveness, and that it may face internal conflicts or external pressures.
6. Nonprofit organization
This is a type of company that does not aim to make profits, but rather to serve a social or charitable purpose. A nonprofit organization can be funded by donations, grants, fees, or other sources of income. The advantages of a nonprofit organization are that it can pursue its mission without being influenced by profit motives, and that it can enjoy tax benefits or public support. The disadvantages are that it may have limited resources and accountability, and that it may face legal or ethical challenges.
7. Social enterprise
This is a type of company that aims to create both social and economic value. A social enterprise can be for-profit or nonprofit, but it uses its profits or surplus to further its social or environmental goals. The advantages of a social enterprise are that it can address social problems while generating income, and that it can attract customers or investors who share its values. The disadvantages are that it may have difficulty balancing its dual objectives, and that it may face regulatory or market uncertainties.
These are some of the main types of companies you should know if you want to start or join one. Each type has its own pros and cons, so you should consider them carefully before making your decision.
What are the kinds of company that show increase or decrease in global demand in this industry?
Introduction
Globalization is the process of increasing economic, social, and cultural integration across countries and regions. It has been driven by technological advances, trade liberalization, and changing consumer preferences. Globalization has also created new opportunities and challenges for companies operating in different industries. Some industries have benefited from globalization by expanding their markets, reducing their costs, and enhancing their innovation. Other industries have faced increased competition, regulatory barriers, and environmental pressures. In this blog post, we will explore some of the kinds of company that show increase or decrease in global demand in this industry, based on the latest data and research.
Increasing global demand
Some of the kinds of company that show increasing global demand in this industry are:
Plastic companies**: According to a report by Fortune Business Insights, the global plastic market size was valued at USD 579.7 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2029. The product demand is advancing in widespread industries, such as food & beverage, consumer goods, automotive, and electrical & electronics. The increasing demand for packaging material from the food & beverage industry is driving product consumption globally.
Economic consulting companies**: Economists often see a massive increase in demand for their services as the general public, businesses, and policy makers grapple with the recession. Consultants, government policy advisors, and even media personalities may also find opportunities to market their expertise during uncertain economic times. Economic consulting companies can help clients with various issues, such as market analysis, forecasting, strategy, regulation, litigation, and valuation.
Digital platform companies**: Digital platforms are online businesses that connect buyers and sellers of goods or services, such as e-commerce, social media, ride-hailing, and streaming. Digital platform companies can leverage their global reach, network effects, data analytics, and innovation capabilities to create value for their customers and stakeholders. According to a report by Boston Consulting Group (BCG), digital platforms accounted for about one-third of global GDP growth from 2014 to 2019. BCG also identified four new business models that can succeed in the new global landscape: digital exporters, digital service providers, digital solution providers, and digital ecosystems.
Decreasing global demand
Some of the kinds of company that show decreasing global demand in this industry are:
Traditional manufacturing companies**: Traditional manufacturing companies produce physical goods using labor-intensive processes and fixed assets. These companies face several challenges in the globalized economy, such as rising labor costs, environmental regulations, trade barriers, and competition from low-cost producers. Traditional manufacturing companies may also struggle to adapt to changing customer preferences and technological disruptions. According to a report by McKinsey & Company, the share of manufacturing in global GDP has declined from 18% in 1990 to 15% in 2018. McKinsey also suggested that manufacturing companies need to transform their business models by adopting digital technologies, developing new capabilities, and reconfiguring their value chains.
Retail and hospitality companies**: Retail and hospitality companies provide goods and services to consumers in physical locations, such as stores, hotels, restaurants, and entertainment venues. These companies have been severely affected by the COVID-19 pandemic, which has reduced consumer spending, disrupted supply chains, and forced many businesses to close or operate under restrictions. Retail and hospitality companies also face long-term challenges from online competitors, changing consumer behavior, and regulatory uncertainty. According to a report by the House of Commons Library (HCL), retail sales in the UK fell by 1.9% in 2020 compared with 2019. HCL also reported that the number of jobs in accommodation and food services in the UK decreased by 18% from December 2019 to December 2020.
Oil and gas companies**: Oil and gas companies explore, produce, refine, transport, and sell fossil fuels. These companies have experienced a decline in global demand due to the COVID-19 pandemic, which has reduced economic activity and energy consumption. Oil and gas companies also face long-term challenges from climate change policies, renewable energy sources, and social movements. According to a report by the International Energy Agency (IEA), global oil demand fell by 8.8% in 2020 compared with 2019. IEA also projected that global oil demand will peak around 2030 under its sustainable development scenario.
Globalization has created both opportunities and challenges for companies operating in different industries. Some kinds of company have shown increasing global demand due to their ability to access new markets, reduce costs, and enhance innovation. Other kinds of company have shown decreasing global demand due to their exposure to competition, regulation, and disruption. Companies need to adapt their business models and strategies to the changing global landscape and customer behavior.
References:
https://en.wikipedia.org/wiki/Online_Etymology_Dictionary
https://en.wikipedia.org/wiki/Online_Etymology_Dictionary
http://www.legislation.gov.uk/ukpga/2006/46/section/1/data.htm
The Globalization of Companies and Industries – Global Business. (n.d.). Retrieved December 22, 2021, from https://wtcs.pressbooks.pub/globalbusiness/chapter/the-globalization-of-companies-and-industries/
New Business Models for a New Global Landscape. (2017, November 14). Retrieved December 22, 2021, from https://www.bcg.com/publications/2017/globalization-new-business-models-global-landscape
Plastic Market Size, Trends | Global Industry Growth [2022-2029]. (n.d.). Retrieved December 22, 2021, from https://www.fortunebusinessinsights.com/plastics-market-102176
9 Businesses That Thrive in Recession – Investopedia. (n.d.). Retrieved December 22, 2021, from https://www.investopedia.com/financial-edge/0811/9-businesses-that-thrive-in-recession.aspx
Industries in the UK – House of Commons Library. (2021, December 6). Retrieved December 22, 2021, from https://commonslibrary.parliament.uk/research-briefings/cbp-8353/
Oil Market Report – October 2020 – Analysis – IEA. (n.d.). Retrieved December 22, 2021, from https://www.iea.org/reports/oil-market-report-october-2020-
https://www.investopedia.com/terms/c/corporation.asp
Sell on Rexcer.com
Reach millions of
B2B buyers globally
