Unit 6: Classification of companies

"Depending on the aspects we look at, we can classify companies in different ways:

• According to the activity sector in which they operate: Primary Sector (extract raw materials), Secondary (transform raw materials) or Tertiary, (Services: commercial and others). A company can operate in more than one sector.
• According to its size: micro enterprises (less than 10 workers), small (less than 50), medium (between 50 and 250 workers), and large (more than 250 workers).
• According to its market: local, regional, national and multinational.
• According to the ownership of capital (capital): private (objective: maximum benefit), public (with social objectives) and mixed (public and private ownership with mixed objectives)
• According to its legal form (legal form): The legal regulations allow different legal forms that can be adopted by the promoters of a company to create it. The employer must choose the one that best suits their interests. You should look at some key points in which the different legal form are different: 

         -Individual entrepreneur or sole propietorship: a person contributes capital, directs the company and assumes the risks of the business
         - Corporate company or company: several persons who, by contract (STATUTES), are obliged to share capital or work (or both), for the development of a business activity. They must be constituted by a notary and registered in the Mercantile Registry, they have to pay the Corpotarion Tax.