Business Perspectives
- Organizer's perspective: a business is a collection of means, machinery, equipment and people organized to achieve a goal.
- Profit perspective: an enterprise is a production organization, through which, within the framework of a certain asset, people combine many different production factors, to create products and services to sell on the market and collect the difference between the cost price and the selling price of the product.
- Functional perspective: an enterprise is a production and business unit that carries out one, several, or all stages in the investment process from production to product consumption or provision of services for the purpose of profit.
- System theory perspective: enterprises are an integral part of the economic system, each unit in that system must be subject to mutual influence, must comply with the operating conditions set by the state for that economic system to serve the consumption purposes of society.
“An enterprise is a production and business unit organized to create products and services to meet consumer needs in the market, thereby maximizing profits on the basis of respecting state laws and the legitimate rights of consumers”.
General business operating characteristics
- Carrying out production and business functions.
- Profit maximization is the basic economic goal, alongside social goals.
- Must accept competition to survive and develop.
Types of businesses
State-owned enterprise
State-owned enterprises are economic organizations invested in, established and managed by the State, conducting business or public service activities to achieve socio-economic goals assigned by the State.
Private enterprise
A private enterprise is an enterprise in which its assets are owned by a single individual.
Joint Venture or Company
This is a type of enterprise in which members will contribute capital, share profits, and bear losses corresponding to their capital contributions and are only responsible for the company's debts within the scope of their capital contributions to the company. There are two main forms of companies: limited liability companies and joint stock companies. There is also another form of company, a joint stock company. This type of company does not have its own assets, does not have its own headquarters and its operations usually depend on the legal status of one of its members.
Cooperative
A cooperative is an autonomous economic organization established by workers with common needs and interests who voluntarily contribute capital and labor in accordance with the provisions of law to promote the strength of the collective and of each member, in order to help each other carry out production and business activities more effectively.
