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types_of_companies_based_on_their_form_and_activities, Study notes of Business Economics

types_of_companies_based_on_their_form_and_activities

Typology: Study notes

2021/2022

Available from 02/16/2023

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Types of Companies Based on Their Form and Activities
The word company must be familiar to our ears. The company already covers the entire life
of the people. Starting from the goods around us that are produced by the company, the
service assistance we receive comes from a company, and we may also work in the company.
Judging from our daily lives, companies have become a part of our lives. However, do you
actually know the meaning of the company? From what is seen in everyday life you can know
that the company is a workplace, which has a number of members in it. Usually companies
produce goods or services, and have workplaces such as buildings, offices, shophouses,
warehouses, factories, or plantations.
From that general understanding, we can define a company as a place where there are
activities of producing goods or services to then be sold to the public. The purpose of
establishing a company is to make a profit or profit from producing something that can
provide benefits to many people. The benefits offered, namely through goods or services that
become solutions to problems faced by society.
The company looked like an ordinary venture. In the outline of the activities that the company
carries out, it is true. The company can indeed be said to be a trader. However, what
distinguishes a company from an ordinary business is that there is a law that binds the
company. A company is defined as a legal entity formed to conduct an industrial business or
commercial business.
Company Definition
According to the Big Dictionary of Indonesian, the definition of a company, that is, an activity
organized in an orderly way or with equipment, with the aim of making a profit. A company
is a place where there are activities to produce goods or services to be sold to the public. The
company's goal is to utilize human resources and natural resources, in order to produce a
good or service, in order to create as much profit as possible. The company will produce goods
or services that are able to be a solution to problems faced by the community or are able to
meet the needs of the community.
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Types of Companies Based on Their Form and Activities The word company must be familiar to our ears. The company already covers the entire life of the people. Starting from the goods around us that are produced by the company, the service assistance we receive comes from a company, and we may also work in the company. Judging from our daily lives, companies have become a part of our lives. However, do you actually know the meaning of the company? From what is seen in everyday life you can know that the company is a workplace, which has a number of members in it. Usually companies produce goods or services, and have workplaces such as buildings, offices, shophouses, warehouses, factories, or plantations. From that general understanding, we can define a company as a place where there are activities of producing goods or services to then be sold to the public. The purpose of establishing a company is to make a profit or profit from producing something that can provide benefits to many people. The benefits offered, namely through goods or services that become solutions to problems faced by society. The company looked like an ordinary venture. In the outline of the activities that the company carries out, it is true. The company can indeed be said to be a trader. However, what distinguishes a company from an ordinary business is that there is a law that binds the company. A company is defined as a legal entity formed to conduct an industrial business or commercial business. Company Definition According to the Big Dictionary of Indonesian, the definition of a company, that is, an activity organized in an orderly way or with equipment, with the aim of making a profit. A company is a place where there are activities to produce goods or services to be sold to the public. The company's goal is to utilize human resources and natural resources, in order to produce a good or service, in order to create as much profit as possible. The company will produce goods or services that are able to be a solution to problems faced by the community or are able to meet the needs of the community.

A company is also defined as an organization that is incorporated, which enters into a business or transaction. According to the book Corporate Law written by Handri Raharjo, at first the term company was referred to as a trader. However, along with the abolition of Article 2 to Article 5 of the Trade Code, the term merchant was also removed and replaced with a company. In addition to functioning to provide benefits for all parties involved in it, the company also functions to drive the economy of a country. The reason is, the company will use labor to produce a good or service so that it can be sold to the public. According to Law Number 8 of 1997, a company is defined as any form of business that carries out activities continuously and permanently with the aim of obtaining profits, be it organized by individuals or business entities in the form of legal entities or non-legal entities, which are established and located in the territory of Indonesia. In addition, based on Law Number 3 of 1982 concerning Compulsory Company Registration, a company is defined as a business entity established and operating in the territory of the Unitary State of the Republic of Indonesia (NKRI), which aims to generate profits. From the two understandings according to the law above, it can be concluded that a company is a legal entity formed by a number of people to run a commercial business or industrial business. A company can be organized in various ways to meet tax purposes and financial obligations. This depends on the company law in its jurisdiction. The company's line of business will usually determine the business structure it chooses such as ownership, partnership, or corporation. This structure also indicates the ownership structure of the company. The company's business lines can also be distinguished between public companies and private companies. The two companies have differences in regulations, ownership structures, and financial reporting requirements. Every company there is registered with the government and some are not registered. For a company registered with the government, it will have a business entity for its company. Every business entity has a different meaning. This business entity is established according to the types of business. Elements of the Company

A Limited Liability Company (PT) is a business entity that is included in a legal entity. This means, a Limited Liability Company can have its own liabilities (debts) and wealth. To establish a pt, it takes at least 2 people who are required to have a notarial deed before registering and obtaining approval from the Ministry of Law and Human Rights. Limited Liability Company has 3 types of capital, namely issued capital, authorized capital, and paid-up capital. Limited Liability Companies also need to have a clear organizational structure, such as directors and commissioners.

  1. State Corporation A state corporation is a type of company whose capital is owned by the state, be it a small part, entirely, or a large part of it. A state company is a company that has capital, either partially or completely, is state wealth or property that has been separated from the State Budget (APBN). Based on Law Number 9 of 1969, state companies consist of Public Enterprises, Public Companies, and Departmental Agencies.
  2. Persero This type of company is almost the same as a limited liability company, but part of the shares are controlled by the state. However, the company does not get facilities from the state. The status of employees of the company is also that of a private employee. In general, in Indonesia, a persero company is a company that has changed its status from Perum or Perjan. The change in status from a state company to a Persero will result in a focus on obtaining higher profits.
  3. Communitarian Fellowship (CV) A communitarian fellowship is a type of company built by two or more people, whose members have varying degrees of engagement with each other. The communion usually consists of at least 2 people, one of whom has the role of an active ally or complementary ally, and the other being a passive ally or an ally of the communitarian. An active ally is a party that takes care of all interests or management of the partnership's business. Meanwhile, passive allies are those who only invest. An active ally is the party responsible for cv interests. If the CV suffers a loss, then the active ally has the responsibility

to bear any losses and pay off the entire CV debt in any way, even at the expense of his personal property.

  1. Cooperatives A cooperative is a joint venture formed from a fellowship of people. A cooperative is a type of company that is founded and operated by its own members. Cooperatives are democratic, which means that one member has one vote (one man one vote), and all cooperative members have the same responsibility in managing the company. The cooperative was established with the aim of improving the welfare of its members. Therefore, being a member of a cooperative can provide many benefits for a person. One of the advantages, which is to increase income.
  2. Sole Proprietorship A sole proprietorship is a type of company whose entire capital is owned by one entrepreneur. Sole proprietorships are also run by that one person. Individual companies carry out all their own business activities, or in other words, take care of all production, marketing, financial affairs, and other business activities alone. If there are a number of workers who help with their activities, then the status only helps employers who are bound by an employment agreement. From the understanding of this individual company, we can know that someone who is the owner of this company has a very big responsibility. All responsibilities related to the company's activities are fully charged to the owner. Because, who owns all the capital, also the one who makes strategic decisions is the owner.
  3. Firm Fellowship A firm partnership is a type of company founded by two or more people to run a company under the same name. The firm's fellowship was established with a joint venture of several people. Each member of this firm has the same responsibility in managing the company. The gains and losses will also be borne together. A firm can be established officially or under hand by simply making an agreement between all members of the firm. Firm partnerships are divided into several types, namely general firms, limited firms, trading firms, and service firms.

An agricultural company is a type of company engaged in natural resource management, for example, such as plantation companies, agro-industrial companies, livestock companies, and inland fishery companies. The characteristics of an agrarian company, namely its activities manage natural resources, cultivate available natural resources, and profit from the management of these natural resources that produce products, which can be sold to the public.

  1. Extractive Companies Extractive companies are types of companies whose activities directly take and utilize the results of natural wealth such as fishing in the free sea, mining companies, seaweed harvesting, legal logging, and so on. The characteristics of extractive companies, namely directly taking objects or goods that from the beginning have been available in nature and making the results of natural wealth or goods to be further utilized or sold.