Monday, July 3, 2017

Company and Cooperative as the Agent of Economy

Company and Cooperative as the Agent of Economy
pixabay.com

Company as the Agent of Economy

As you know, a company refers to a site where the process of production carries out. A company can be a factory, a store, a plantation, a shrimp embankment, or machine shops.

The main company's activity is to produce goods and services to fulfill family households or society's necessities. In other word, a company has a role as a producer. In running the process of production, a company requires some factors of production from a family household or other companies. For example, labour and raw materials supply. Thus, there is cooperation between a company and a family household. As a work partner, a company should notice the interest of a family household. For example, a company should produce qualified goods and service to make a family household satisfied as a consumer. Besides, a company should humanize its employee by taking notice of their prosperity. An employee is a factor of labour production supplied by a family household.


As a critical student, you may ask a question. For example, "Is a company's role only as a producer? Doesn't a company utilize also labour and other factors of production which means also play roles as a consumer? It has a following answer.

Consuming goods and service run by a company is not a direct and last consumption. Goods and service are utilized for the following production. The use of goods and service for the following production is called investation. So, the main role of a company is as a producer. Therefore, a family household is called also a household production. Furthermore, a company runs distribution as production and distribution cannot be separated.

Cooperation as the Agent of Economy

A cooperation is a corporation that manages a company. For examples, a shopping complex, saving and loan cooperation, goods production, and transportation service.

No comments:

Post a Comment