√ Definition of Business Entity and its Types (Full Discussion)
Definition of Business Entity and its Types (Full Discussion) - In running a business, it takes effort and hard work to work and turn on the business that we live in. To get what we expect requires good consideration and thought.
The business entity that is the benchmark for the business to be carried out can be one of the important things to be able to set up your own desired business. For this reason, careful consideration of business entities can obtain positive things in the future.
Definition of Business Entity and its Types (Full Discussion)
For this reason, it is necessary to formulate the right business entity before running the business you want to do. To be able to understand what a business entity is, it will be explained as follows.
Definition of Business Entity
A business entity is an organizational and economic unit that has the objective of being able to obtain an advantage or profit and to be able to provide a service to the community. The definition of a business entity is a juridical, technical and also economic entity that has the objective of being able to seek profit or profit.
Many business entities equate about the same business entity with a company even though in reality it is very different from one to another.
The difference is that a business entity is an institution, while a company is where the business entity is located to manage various kinds of production. Setting up a business entity requires the following:
- Have merchandise or products that are sold.
- Have a way of product marketing
- Determine the cost of the product or service.
- Labor requirements.
- Expenditures and also the type of business entity selected.
The selection of the type of business entity is influenced by several factors, including:
- Type of business, such as plantations, trading, and others.
- Extensive marketing reach.
- Capital to start a business.
- The range of operational permits from the government.
- Plan advantage.
Types of Business Entities in Indonesia
There are various types of business entities in Indonesia, including:
1. BUMN
Government-Owned Enterprises with all or part of the capital from the government, for example:
- Perjan
- Public Corporation
- Persero
2. BUMS
Privately Owned Enterprises are entities that are established by a group or someone who is private. Example:
- Fa or Fima
- CV or Commanditaire Vennotschap
- PT or Limited Liability Company
Thus the explanation regarding Definition of Business Entity and its Types (Full Discussion) explained by knowledge. Thus the difference between business entities and companies will be seen because they are not the same or different between business entities and companies. Hopefully useful 🙂
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