enterprise

An enterprise generally refers to a legal person or other social and economic organization that uses various production factors (land, labor, capital, technology and entrepreneurial talent) to provide goods or services to the market for the purpose of making profits, and implements independent operation, self financing and independent accounting. In the category of commodity economy, as one of the multiple modes of organizational units, according to certain organizational rules, an economic entity organically formed is generally for the purpose of making profits, with the mission of maximizing the interests of investors, customers, employees and the general public, and exchanging income by providing products or services. It is the product of social development, growing and growing with the development of social division of labor. Enterprises are the main participants in market economic activities; Under the socialist economic system, various enterprises coexist to form the micro foundation of the socialist market economy. There are three basic organizational forms of enterprises: sole proprietorship, partnership and company. Corporate enterprises are the most important and typical organizational forms in modern enterprises. According to modern economic theory, enterprises are essentially "a mechanism for resource allocation", which can optimize the allocation of economic resources in the whole society and reduce the "transaction cost" of the whole society.