commercial enterprise

A commercial company is a commercial company that is dedicated to buying goods and then selling them without transforming them.

Unlike other types of companies, the commercial company does not transform the purchased goods. In this sense, the purchased goods can be of different nature. They can be raw materials, semi-finished goods or finished goods.

In this article we will put examples of commercial companies for each of the cases mentioned above. Of course, before we will see what are the characteristics of a commercial company.

Characteristics of a commercial company

The characteristics that distinguish this type of company are:

  • Buy goods and sell them.
  • The buyer can be the final consumer or another company.
  • It does not transform the goods you buy.

Types of commercial enterprise

Commercial companies can be classified according to two factors.

  • According to the volume of operations
    • Wholesaler
    • Retail
  • Depending on the type of product they work with
    • Raw Materials
    • Semi-finished products
    • Finished products

Example of commercial companies

To understand the concept we will cite an example for each of the classifications of companies of this type.

  • A company that buys bananas in large quantities and sells them without prior transformation would be of a wholesale commercial type. If it were done in small quantities (as long as it does not transform the purchased good) it would be a retail business.
  • A company that buys car engines in large quantities and sells them to the workshops of a certain brand. It would be a wholesale commercial company that trades with semi-finished products. In case it was in small quantities it would be the same but retail.
  • Finally, the company that buys mobile phones in large quantities and sells them, would be of a wholesale commercial type that trades with finished products. If it operates with small amounts, then it would be the same but retail.
by Abdullah Sam
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