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Company: Definition, Example and Related Terms

What is a Company ?

A company is a type of business that operates as a separate legal entity. This means it has its own rights and responsibilities, separate from the people who own, manage or work in it. It can do things like enter into contracts, own property, and be sued or sue others.

Here's an interesting fact: Because a company is a separate legal entity, it continues to exist even after the owners or managers are gone. This is different from other types of businesses, like sole proprietorships and partnerships, which end when the owner or a partner leaves.


  • Company Example
    Technology Company Apple Inc. enters into a contract with a supplier for the production of iPhone parts.
    Retail Company Walmart signs a contract with a logistics company for transportation of goods.
    Automotive Company Tesla Inc. enters into a contract with a battery manufacturer for the supply of batteries.
    Food and Beverage Company Coca-Cola Company signs a contract with a sugar supplier for the supply of sugar.
    Entertainment Company Netflix signs a contract with a production company for the creation of a new series.
    Pharmaceutical Company Pfizer enters into a contract with a research facility for the development of a new drug.

Related terms