How to understand that the essence of an enterprise is the sum of a series of contractual relationsh

The essence of the enterprise is the sum of a series of contractual relations, which is a contract network composed of enterprise owners, operators, creditors, employees, consumers, and businessmen.

There should be an equal and independent relationship between the subjects, and the parties touched by the contract network are called stakeholders.

The effectiveness of a business is built on these stakeholders. In order to achieve the overall efficiency of the enterprise, the enterprise should not only pay attention to the interests of shareholders, but also consider the interests of other stakeholders, and adopt a different way of monitoring the operator. Specifically, in the board of directors and the board of supervisors.

In particular, there should be stakeholder representatives other than shareholders, and the purpose of this is to play the role of stakeholders.

The official website shall prevail.

Enterprises play an increasingly important role in modern social life, and no one can exist independently from enterprises. For example, I spend most of my time in the inner wall of the company, and my life needs also come from the money I pay for my time and energy, and my social value is also reflected through the company's work. All aspects of clothing, food, housing and transportation involve different types of enterprises in all walks of life, and without the goods and services they provide, then the whole society will face paralysis.

What is Enterprise? What is the essence of a business? Why do companies exist?

I think it's important to recognize these three issues in order to gain a deeper understanding of other aspects of the business and the relationship between the company and its people.

1. What is an enterprise?

Enterprises generally refer to legal persons or other social and economic organizations that use various factors of production (land, labor, capital, science and technology, talents, etc.) to provide goods or services to the market for the purpose of making profits, and implement independent management, self-responsibility for profits and losses, and independent accounting. This is an explanation of the enterprise in the textbook, of course, the definition of the enterprise is different in different directions and different focuses.

The basic definition of an enterprise: an enterprise is an economic organization that conducts production and operation for the purpose of making a profit and provides products and services to the society.

It is clear that the enterprise has a purpose - to make profits and maximize the value of the enterprise, which is not only the appeal of the business owner but also the appeal of the enterprise managers and employees. The goods or services provided by the enterprise are paid and do not do loss-making business. In the process of enterprise operation, various factors of production must be used, and without some important factors, the enterprise cannot operate.

The operation of the enterprise is oriented to this society, independent management, and the main responsibility for its own operation.

Characteristics of the enterprise:

1) An enterprise is an economic organization for the purpose of specific interests;

2) The enterprise has an independent legal person;

3) Enterprises are an important part of the social economy;

The normal operation of the social economy needs to optimize the allocation of resources with the help of the way of resource allocation of enterprises.

4) The enterprise is an economic operation system;

Although each enterprise has a different division of labor, it has its own independent operating mechanism.

Second, what is the essence of the enterprise?

The essence of the enterprise is a mechanism for resource allocation, and the enterprise and the market are two ways of resource allocation that can replace each other. Enterprises can achieve the optimal allocation of social and economic resources and reduce the "transaction costs" of the whole society.

3. Why do enterprises exist?

The fundamental purpose of the existence of enterprises is to reduce transaction costs. To obtain information about goods or services outside the market, it is not only the goods or services themselves that need to be paid, but also other costs. For example, the cost of searching for information, the cost of negotiation, the cost of supervision and management, the cost of implementation, etc., the most important thing is the asymmetry and incompleteness of market information, which makes the transaction cost very high.

Enterprises came into being to reduce the cost in the transaction process and maximize the benefits with the scale and integration of the enterprise.