Some people start from the thought that a business and a company They are the same. However, this is not correct. Both concepts have differences marked, which can be seen in the course of reading.
It is important to define each of these points. People say that a business, consists of activities, systems, or methods, which maintain profitable purposes, while providing a benefit to people.
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For its part, a company It is an entity created for economic purposes, where various activities such as production, commercialization, or provision of a service that generate benefit to the environment can be carried out.
In this article you will find:
But what is the difference between a business and a company?
Both concepts are somewhat subjective, so people tend to have different concepts about a business and a company.
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A business by the nature that it possesses, it is possible to find it everywhere, and even many companies are dedicated to a great business diversity.
Among the main differences, the duration can be found, since a business is for-profit, and the shorter they are, the faster you will get this benefit. However a company, is considered a stable entity that has a longer duration.
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In this case, the companyhas a trained staff in different areas, with a clear vision and a mission towards the objectives they want to achieve. Can be seen short and long term goals. However, a business owns a short term management.
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Regarding the economy of the country, a company generates more profits employing a greater number of people, in this sense, a business has fewer staff, so it is more limited in this regard.
Difference in terms of production
The production of a business it depends specifically on the person responsible, so it is a punctual action, without further growth or development. However, the company has a more independent attitude, where it is possible to planning and control. This allows further development towards the company success.
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This way, a business is considered a transaction, for example, it is possible to buy and resell a product, and this is considered a deal. When business operations grow, becoming more formal and stable, it is considered as a company.
For instance…
It is possible to observe a deal that consists of buying a car, and then selling it and making a profit in return. In this same way, it can be observed a company that is dedicated to the sale of cars.
In the first case, the car is bought and sold solely to earn money and provide a benefit to someone else, while the company that is dedicated to buying, renting or selling cars is an entity that has been created for this type of business.
Many times, these concepts can be confused, making it happen a business for a small business. But nevertheless, the business is considered as a method, while that the company It is an entity that is in charge of carrying out these methods.
