What is an enterprise?

Generally speaking, an enterprise refers to a legal person or other social and economic organization that uses various factors of production (land, labor, capital, technology and entrepreneurial talents) to provide goods or services to the market in order to obtain profits, and implements independent operation, self-financing and independent accounting.

In the category of commodity economy, as one of the various modes of organizational unit, according to certain organizational rules, an organic economic entity generally aims at profit, maximizing the interests of investors, customers, employees and the public, and exchanging income by providing products or services. It is the product of social development, and develops with the development of social division of labor. Enterprises are the main participants in market economy activities.

Enterprises have three basic organizational forms: sole proprietorship, partnership and company, and corporate enterprise is the most important and typical organizational form in modern enterprises.

Extended data:

The three organizational forms of enterprises are as follows:

1, wholly-owned enterprise

A wholly-owned enterprise refers to an enterprise invested and operated by one person. The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise. The person in charge of the enterprise is the investor himself. The name of the person in charge of the enterprise shall be consistent with the identity card, and no pseudonym shall be used. According to the relevant provisions of China's current tax law, private enterprises should pay private personal income tax on production, business income and other income.

2. Partnership enterprises

A partnership enterprise refers to a for-profit organization in which all partners enter into a partnership agreement, * * * jointly contribute capital, * * * jointly operate, * * * enjoy benefits, * * * bear risks, and bear unlimited joint and several liabilities for corporate debts. Partnership enterprises are divided into general partnership enterprises and limited partnership enterprises. A partnership enterprise refers to an enterprise organization form in which natural persons, legal persons and other organizations are established in China in accordance with the Partnership Enterprise Law of People's Republic of China (PRC), and two or more natural persons enter into a partnership agreement, * * * jointly contribute to the operation, * * * assume sole responsibility for profits and losses, and * * * bear risks.

3. Company

The company is a for-profit enterprise legal person established in China in accordance with the Company Law, including limited liability companies and joint stock limited companies. It is a form of enterprise organization formed in the market economy to meet the needs of socialized mass production.

Baidu encyclopedia-enterprise