Household production (the company)

Household production company is called. The company is a unit that combines the technical factors of production to produce goods and services. According to the type of legal entity, the company is classified as a proprietorship, CV, firm, limited liability company (PT), and cooperatives. According to the field of business, the company consists of agricultural companies, extractive, trade, and services.

Company's role in the economy is as follows.
a. Manufacturers. As a manufacturer, the company produces goods and services. For example, the bakery produces bread, automotive companies produce cars or motorcycles. Extractive companies are companies that produce goods and by taking directly from nature, and so on. Industrial company is a company that produces goods or semi-finished. For example, cigarette factories, food manufacturers, and others.
b. User input. To produce goods or services necessary components called factors of production. Factors of production supplied by households, with the skill of the company combining factors of production to be processed to produce goods and services. As the owner of skills, employers will benefit or profit.
c. Development agency. Agent means an intermediary or auxiliary. As an agent of development means the company helps government in development activities. Economic activity (production) of the company to provide welfare for the employees of the company, as well as to the community, the purchase of factors of production by the company resulted in household income. Thus, what the company can assist the government's efforts in improving the welfare of the people.