Company and organization

What is the difference between a company and an organization? After seeing the meaning of both terms, it is possible to better understand the difference between company and organization . While the company is the organization of the assets used by the entrepreneur, the organization is the economic activity carried out by the same.

However, in the legal field the two terms have a different meaning. Organization is a professional activity organized to produce or exchange goods / services. The company is a complex of assets organized by the entrepreneur for the exercise of a business activity with which he will raise money.

 DefinitionOrganization with commercial and profit-making purposesSocial group with projects for different purposes but not for profit
 objectivesThrough services or products earn moneyVaried purposes but not to make money with them
 TypesThey are classified into: 

  • Private companies
  • Public enterprises
  • Mixed Companies

And according to the number of employees in:

  • Large companies
  • Medium companies
  • Small companies
  • Micro-businesses
They are classified according to their purposes in: 

  • For-profit organizations
  • Nonprofit organizations

According to its formality:

  • Formal companies
  • Informal businesses

According to its centralization:

  • Centralized companies
  • Decentralized companies



Coca Cola



World Health Organization

Different NGOs

What is a company:

The company is a professional activity organized to produce or exchange goods / services for profit. Businesses exist to benefit their owners. Although a company can also have non-profit objectives. Let’s keep in mind that a company is considered a for-profit organization (we will see below).

Objectives of a company:

As we have said, the primary purpose of a company is to have economic benefits by providing certain services. When we talk about the benefits of a company, we are referring to the fact that they must exceed the costs involved in providing a service or selling their products.

Types of companies

As we have said, companies are an organization or human institution with commercial or economic purposes. There are different types of companies. Due to their number of employees, they can be divided into:
* Large companies: These are companies with more than 200 employees, some transnationals reaching millions of employees.
* Medium Companies: These are companies whose number of employees varies between 20 and 200 employees.
* Small businesses: these businesses have fewer than 20 employees.
* Micro- companies : These are companies with less than 10 employees.
According to their shareholding constitution and where the capital comes from, they can be divided into these types of companies:
* Private companies:Companies that are constituted with private capital from a partner or shareholders. The objective is profit profitability. Examples of these private companies include Microsoft, Grupo Clarin, Volkswagen, Hewlett Packard, etc.
* Public companies: In this case, the State is the owner or majority shareholder. Examples of public companies include: Petrobas, Aerolíneas Argentinas, YPF (Yacimientos Petrolifos Fiscales), RTVE (Spanish Radio and Television Corporation)
* Mixed or semi-private companies :The capital for this type of company comes from both the private and state sectors, there is no public control but there are subsidies. Examples of this type of company include: Iberia Airlines, PetroCanadá hydrocarbon company, Red Eléctrica de España, etc.

Examples of companies

Businesses are the most predominant type of employment on the planet. We can see some examples of companies:
* Samsung Company
* Coca Cola Company
* Nokia
Business * Mc Donalds
Company * Chocolates Aguila Company

What is an entrepreneur

Entrepreneur is one who “professionally exercises an organized economic activity for the purpose of producing or exchanging goods or services.” There are three elements that allow an economic activity to give rise to the existence of a business: the economic activity must be organized, that it has the purpose of producing or exchanging goods and services and that it is carried out professionally.

What is an organization:

The organization is when partners or owners start a project for different purposes but not for profit.

Objectives of an organization

The purposes of the organizations are very varied, from cultural purposes, ecological purposes, social purposes, medical purposes, humanitarian aid purposes, etc. Obviously, when it comes to organizations that pursue different objectives, they must also have benefits to cover the costs of the ends, but they do not seek a profit.

Organization Types

Organizations can be divided according to their structures, their formality, their purposes or their objectives, their main characteristics are divided into different types. We clarify as well that it can happen that an organization characteristics of different types of companies.

Organizations according to their purposes

* For-profit organizations (Companies): They are those whose objective is monetary benefits.
* Non-profit organization: These are organizations that seek a benefit for society.

Organizations according to formality

* Informal Organizations: For example, those formed to give gifts in a hospital for Christmas.
* Formal organizations: For example. NGOs.

Organizations according to their degree of centralization

* Decentralized organizations: The command is delegated to the entire organization.
* Centralized organizations: Authority is concentrated in the upper spheres and few decisions are delegated to those below. For example the armies.

Organization examples

* UN: United Nations
World Organization * World Tourism
Organization * World Trade Organization

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