Important function in the company’s economic activities are as follows:
a. Produce goods and services
there are needs to be met encourage companies to create goods and services satisfying the needs. Goods and services produced by firms will be distributed to other economic actors.
1. Household. Distribution of goods and services to domestic production can be made directly or through distributors.
2. Government. Government needs for goods and services produced to support the course of government activities in order to serve the community. Channeling can also be done directly or through the goods market.
3. Other companies. Sometimes the goods and services produced by a company is required by other companies as raw materials, auxiliary materials, semi-finished, or even as capital. For example the company will supply fabric to garment production.
4. Communities abroad. In addition to domestic production, goods and services companies are also used by people overseas. Purchase and delivery of goods and services will lead to export activities.
b. As input users
how companies can produce goods and services? Companies must process the factors of production into goods and services. Production factors in the form of labor, natural resources, and capital. Factors of production are provided by the household. For all the factors of production which has been provided, the company will provide remuneration to the household. Remuneration in the form of wages or salaries, rent, interest, and profits. Purchase of production factors are sometimes also involved the public abroad, either in the form of experts, loan capital, capital goods, and raw materials.
c. Paying taxes to the government
company is also part of the general public. Thus, the company participated utilize public facilities provided by the government. Hence also, the company must pay taxes to the government as evidence of his participation on development.
d. As agents of development
economic activities of the company proved to be a major influence on economic development. Of its activity the company has helped the government in terms of providing employment, improving the welfare of employees, and build various economic facilities.
