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