Why should businesses be profitable

Because the purpose of the enterprise should be to maximize the value of the enterprise.

Maximizing corporate value is related to long-term and long-term strategy.

Because the appreciation of the value of the enterprise itself is more important than the profit, the profit may not necessarily promote the appreciation of the enterprise, but the appreciation will inevitably make a profit.

For example, a company would rather make less money and invest more money in welfare undertakings and make a name for itself, so that the intangible assets of the enterprise can continue to rise, and although the profit is less, the value of the company will go up.

To put it bluntly, for example, although the major shareholders of many shares are also concerned about how much the company can make profits, they are more concerned about whether the company appreciates and whether the company's value has improved, and whether the company's value has increased is most directly reflected in the stock price and the acquisition price of the company by other companies. As long as the value of the company rises to a certain height, those shareholders will not hesitate to sell their shares. Because the daily profit of the enterprise wins the cash flow, and the maximization of the enterprise value wins the total assets of the enterprise, of course, the total assets are more important than the simple cash flow.

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This question seems simple but is actually a philosophical question, surplus value is profit, human beings have produced profit since exchange, and everyone wants to pursue the maximization of profits.

Only by surviving can we seek development, and only when an enterprise is profitable can we survive.

Lemon has something to say 168

Someone will certainly be direct, nonsense, isn't this the definition of a business?

A business is definitely a for-profit organization.

Therefore, this topic has never been questioned by anyone, including the entrepreneurs themselves.

It's just that everyone thinks about it, but there will be a difference between short-term benefits and long-term returns.

However, the phrase "a business is a profit-oriented organization" is based on the framework of classical economics, and if we break the original cornerstone assumptions, this inherent perception will be broken.

The existence of an enterprise is to meet the realization of needs, for example, the emergence of a restaurant, the core is to meet a certain need of you in a certain scenario.

If you feel good, you will come up with some money to support it, and if the person who can meet the needs is not based on financial support, he may collapse the next day. But at this time, it doesn't need to ask for itself, if it really meets your needs in a certain aspect, even if the performance is not perfect enough, even if there are still many problems, but you still need it.

Some people will pay it themselves to keep it running. Because the customer needs it, as long as the customer gives it enough money to keep it running, the business can be operated. If it costs 40 people, people are willing to feed 50, and more people are willing to spend again, it may expand.

As long as you need it in a certain situation, you pay for it, you just keep it running, that's the business side.

A business is an organization for profit – neoclassical economics.

In this, man is a rational person.

The capital mechanism, the operation of the capital layer, capital is to seek profits.

The motivation is to keep the business growing in order to better provide services in a certain area or solve a problem in a certain area.

Just like people can't live without eating, but we can't say that we live to eat.

Legal analysis: The Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security recently issued the "Opinions on Several Issues Concerning the Application of Law in the Handling of Criminal Cases of Intellectual Property Infringement", which further clarifies the jurisdiction of criminal cases of intellectual property infringement, the effectiveness of collecting and collecting evidence, and how to determine the "purpose for profit" in the crime of copyright infringement. The Opinions stipulate that for the purpose of making profits, without the permission of the copyright owner, disseminating other people's written works, films, television, fine arts, photography, video works, audio and video recordings, computer software, and other works to the public through information networks, in any of the following circumstances, is "other serious circumstances" as provided for in article 217 of the Criminal Law:

The amount of illegal business operations is more than 50,000 yuan; The total number of disseminated works of others is more than 500 pieces (parts); The actual number of clicks on the work of others reaches 50,000 or more; Disseminating the works of others through a membership system, with more than 1,000 registered members; Although the amount or quantity does not meet the standards provided for in the preceding paragraph, it respectively reaches more than half of the two or more standards.

Legal basis: Article 217 of the Criminal Law of the People's Republic of China: Whoever, for the purpose of making profits, infringes on copyrights or rights related to the right to work in the spring or in any of the following circumstances, and the amount of unlawful gains is relatively large or there are other serious circumstances, a sentence of up to three years imprisonment and/or a fine is to be given; where the amount of unlawful gains is huge or there are other especially serious circumstances, a sentence of between 3 and 10 years imprisonment and a concurrent fine is to be given

The Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security recently issued the Opinions on Several Issues Concerning the Application of Law in Handling Criminal Cases of Intellectual Property Infringement, which further clarifies the jurisdiction of criminal cases of intellectual property infringement, the effectiveness of collecting and collecting evidence, and how to determine the "purpose for profit" in the crime of copyright infringement. The purpose of the company is to make profits, and the purpose of setting up the company and the operation of the company are all for the purpose of seeking economic benefits. To do this, a company must engage in some kind of economic activity on a continuous basis, such as the production of goods, exchange, or the provision of a certain service.

The for-profit character of a company in company law has been recognized by the corporate legislation of many countries and regions around the world, thus becoming an essential feature of a company. The Opinions stipulate that, for the purpose of making profits, without the permission of the copyright owner, the dissemination of other people's written works, films, television, fine arts, photography, video works, audio and video recordings, computer software, and other works to the public through information networks, in any of the following circumstances, is "other serious circumstances" as provided for in article 217 of the Criminal Law: the amount of illegal business operations is 50,000 yuan or more; The total number of disseminated works of others is 500 or more; The actual number of clicks on the work of others reaches 50,000 or more; Disseminating the works of others through a membership system, with more than 1,000 registered members; Although the amount or quantity does not meet the standards provided for in the preceding paragraph, it reaches more than half of the two or more standards.

Legal basis: Article 217 of the "Draft Criminal Law of the People's Republic of China" provides that for the purpose of making profits, there is any of the following circumstances of infringement of copyrights or copyright-related rights, and the quota for the number of unlawful gains is relatively large or there are other serious circumstances, a sentence of up to three years imprisonment and/or a fine is to be given; where the amount of unlawful gains is huge or there are other especially serious circumstances, a sentence of between 3 and 10 years imprisonment and a concurrent fine is to be given

Generally for profit.

Businesses & Companies:

An enterprise is a contractual organization, which is a profit-making economic organization that engages in economic activities such as production, circulation, and services, meets social needs with production or services, implements independent management, independent accounting, and is established in accordance with the law.

The goal of a business is to create wealth or value. In today's society, enterprises, as important cells of the national economy, play an increasingly important role and function.

Enterprises can promote socio-economic and technological progress, and in order to be invincible in the competition, enterprises need to continue to actively adopt advanced technology, which will objectively promote the progress of the entire socio-economic technology.

The company is especially a share, and the shareholders are a typical joint venture relationship, although the limited liability company has a little human compatibility, but due to the existence of the limited liability system, the capital cooperation color is heavier.

The partners of a partnership are established by a personal relationship, specifically on the basis of trust between people, so the dependency relationship between partners is relatively strong.

The company is a legal entity, which can independently bear civil liability with its own property; A partnership does not have legal personality, so it cannot independently bear civil liability with the property of the enterprise.

Expand knowledge: Corporate culture is an organization's unique cultural image composed of its values, beliefs, rituals, symbols, and ways of doing things, which is all aspects of the enterprise in its daily operation.

Staff culture, also known as enterprise staff culture, is a cultural form corresponding to corporate culture, staff culture is employee-oriented, is a quality culture, corporate culture is enterprise-oriented, is a management culture.

Summary: If you want to evaluate the value of a company or enterprise, it is true that the economy and output value are crucial, but to reflect its overall quality and employee quality, corporate culture is very important.

A company is an economic organization that aims to make a profit.

Reasons for the company's profit-making purpose:

Enterprises from the day of its establishment is facing fierce market competition, has always been in the survival, bankruptcy, development, shrinking contradictions, the primary task of enterprise management is survival, only profit can survive, enterprises must be profit-oriented as the main driving force for development.

The purpose of setting up a company and the operation of the company are to seek economic gain. Therefore, a company is an economic organization for the purpose of making profits. The company is a form of enterprise organization formed to meet the needs of large-scale production in the market economy and society.

Meaning of economic organization:

Economic organization refers to the units such as households, enterprises, companies, etc., which organize production factors for production and business activities in a certain way, and is a complete organic whole composed of a certain social group through the distribution of rights and responsibilities and the corresponding hierarchical structure in order to ensure the normal operation of the economic circulation system.

Basic characteristics of the company:

The company has legal personality. That is, the company is legally endowed with personality, operating in its own name, enjoying rights, assuming responsibility, and responding to lawsuits, so that the company can become a competitive subject in the market. In real economic activity, a company is an economic entity.

Advantages and disadvantages of the line function system and the simulated decentralization system:

1. Advantages and disadvantages of the line function system.

Advantages: It not only maintains the advantages of centralized and unified command of the linear system, but also absorbs the advantages of the functional system to play the role of professional management, and is more suitable for the characteristics of modern industrial production. Therefore, both domestic and foreign, most small and medium-sized enterprises adopt a similar organizational structure model.

Disadvantages: The work between line departments and functional departments is prone to incoordination or contradictions, which increases the coordination workload of senior managers; If too much authority is given to the functional department, it will disrupt the command and command system of the line department; If you don't pay attention to the suggestions of the functional departments, it can also affect their motivation.

2. Identify the advantages and disadvantages of the decentralization system.

Advantages: Absorb the advantages of the linear function system and the business division system, implement simulated independent accounting, and assume simulated profit and loss responsibility, which is conducive to decentralized management and improve the enthusiasm of production and operation of various departments. Cons:

Authority and responsibility are simulated, vague, and quiet assessment and assessment are also more difficult, which is not conducive to information communication and coordination within the organization.