Enterprise

Enterprise an entity authorized by law to do business (manufacturing, construction, trade, services) carried out for commercial purposes on their own account.

Enterprise as the operator is:

• economically separate - that is financially independent
• legal personality - can act as a legal entity (this occurs at the moment of entering into the proper registry).

The company is a unit that converts three types of production factors into good which is a uniform, durable, meets needs of the consumers. This specialised small, medium and large institutions guide production processes and dominate over the landscape of the modern economy.

The enterprise is the place of creation of benefits from repeating production or service activities. The company is an incomplete agreement. Where people can predict the course of future events, basically it is possible to make market transactions, because it is possible to conclude an agreement that will define in detail what is going to happen in every situation.

Types of enterprises

There are several types of enterprises, including:

• Sole proprietorship: A business owned and operated by one individual, who is personally responsible for all debts and liabilities.
• Partnership: A business owned and operated by two or more individuals, who share profits and losses and are personally responsible for all debts and liabilities.
• Corporation: A separate legal entity owned by shareholders, who elect a board of directors to manage the business. Shareholders are not personally liable for the corporation's debts and liabilities.
• Limited Liability Company (LLC): A hybrid between a partnership and a corporation, where the owners have limited personal liability for the debts and liabilities of the business.
• Cooperative: A business owned and operated by its members, who share in the profits and losses and have a say in the management of the business.
• Non-Profit: an enterprise that does not distribute profits to owners or shareholders, but instead uses them to further the organization's goals.
• Government-Owned: an enterprise that is owned and operated by a government, and may provide goods or services to the public.
• Social Enterprise: An enterprise that aims to achieve social or environmental goals in addition to financial gain.

The type of enterprise chosen will depend on the specific needs and goals of the business and the owners.

Enterprise — recommended articles

Stakeholders — Secret company — Limited partnership — Company limited by guarantee — Public authority — Regulatory data — Definition of strategic management — Takaful — Functions of accounting

References

• Dow, S. C., & Hillard, J. (1995). Keynes, knowledge and uncertainty. Edward Elgar.