5 Type of Company & Their Characteristics That You Need To Know
The Company is an organization founded by a group of people or other entities whose activities are produced in various forms ranging from goods, services and so forth. Typically, the production activities occur or do in order to get an advantage.
In general, the company is an organization where resources such as raw materials and energy in the process in order to produce goods or services that can be sold to people to be able to take profit.
Based on the business field, the company can be classified into five types:
- Extractive companies – Type of company whose activities directly capture and utilize the results of the natural resources such as mining, fishing in the sea freely and so forth.
The characteristics of an extractive company
- Take direct objects or goods are available in nature
- Sell the collection of objects or goods for sale
- Companies Agriculture – type of company that engaged in the management of natural resources such as agro industry, plantations and inland fisheries.
The characteristics of an of an agricultural company
- Managing natural resources
- Taking the results of the management to sell
- Culturing of natural resources
- Company Industry / Manufacturing – type of company that engaged in the processing of raw materials into semi-finished or finished goods that can be sold to customers.
The characteristics of manufacturing companies:
- Its activity processing raw materials into a finished product or a ready-made.
- Revenue from sales of products
- There is a cost of goods sold to determine the profit / loss
- Cost of production consists of raw material costs, labor costs and factory overhead costs
- Trading Company – type company main business is buying an item which is then resold to customers.
The characteristics of trading companies:
- Its main revenue comes from sales of merchandise
- Costs mainly comes from the cost of goods sold.
- No change goods
- Selling goods at a higher price than the original price
- Services Company – Types of companies that sell or provide services to customers or the public, such as banks, insurance, transport, accounting firms and others.
The characteristics of a service company
- Providing services to customers or clients or the public
- The earnings gained from the services rendered
- Does not have a calculation of the cost of sales
- The gain or loss derived berdasalkan result of the comparison of the amount of revenues and expenses or the severity of the services rendered.
These five types of companies have activities, opportunities and risks are different. Even so, all five types of companies also have in common that such
- As a business unit to conduct economic activities in order to meet human needs
- Have the same goal, namely to benefit
- Despite having activities, opportunities and risks different from, with good management they can maximize the opportunities that they have.
At the movement’s rapid market, forcing the five types of companies above to be able to continuously evolve to keep pace with the changes and developments occurring environment. That is why they need a management solution that can help them in adapting to the rapid development of the market.
Here, the role of ERP software such as Acumatica ERP business software plays an important role in the progress of your efforts. With a variety of modules which cover all business needs such as financial, distribution, CRM, Inventory and many more modules as well as other features. With the modules and features possessed by Acumatica ERP, you can work on various aspects of your company very easily. So make sure you have used this ERP solution in any type of company for the future a better company.