ECONOMIC AGENTS: BUSINESSES AND COMPANIES

Economic AgentsEconomic agents are any individuals, institutions or groups of institutions that play a part in any economic circuit through their rational actions and decisions. Although they have different roles in the economic, production, investment or consumption circuit, they establish essential economic relationships with each other:

  • State
    Makes consumption, investment and economic policy decisions;
  • Households
    Make decisions on consumption of goods and services and on savings, depending on their income;
  • Companies
    Make investment, production and employment decisions.

 TYPES OF COMPANIES

There are different types of company, which can be classified on the basis of size, ownership and organization.

 

  1. According to their size companies can be:
  • Small when they employ less then 50 people
  • Medium when they have from 50 to 250 employees
  • Large with more than 250 employees.
2.    In relation to the ownership companies are classified into:
  • Public owned by the State
  • Private owned by  individuals.
  • Mixed with private and public capital.
  3.    Organization of the companies can be:
  • Public licenses companies whose capital is divided into shares.
  • Limited companies whose capital corresponds to a number of partners
  • Cooperatives partners provide capital and labor

unit 2 review

BusEntActInt2V2_tcm4-378731 – para combinar

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