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A company is an organizational and legal entity formed by an association of individuals, either natural, legal or a mixture of both who share a common purpose and come together in order to focus their diverse talents and organize their collectively available skills or resources to achieve specific stated goals and participate in the provision of goods and services to consumers. A company can also be described as an organization that provides goods and services for human needs.

A company or association of people

A company or association of persons may be created by law as a legal entity so that the company itself can accept limited liability for civil liability and taxation incurred when members perform (or do not) perform their duty within the “birth certificate” or published policy.

Because companies are legal entities, they can also partner and register as companies, often referred to as a corporate group. When the company closes it may need a “death certificate” to avoid further legal obligations.

Companies serve as drivers of economic activity

Businesses serve as drivers of economic activity and are prevalent in capitalist economies, where most of them are privately owned and provide goods and services assigned through a market to consumers and customers in exchange for other goods, services, money or other forms of exchange that have intrinsic economic value.

Companies can also be non-profit social enterprises or state-owned public enterprises operated by governments with specific social and economic objectives.

A company owned by several individuals may be formed as a company incorporated or jointly organized as a company. Countries have different laws that can assign different rights to different commercial entities.

The word “business” may refer to a particular organization or an entire market sector (e.g., “financial business” is “the financial sector”) or to all economic sectors collectively (“the business sector”). Composite forms such as “agribusiness” represent subsets of the broader meaning of the concept, which encompasses the entire activity of suppliers of goods and services.

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