Guide to The Operations of Commercial Enterprises

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Business is an activity, system, method or way to get money in exchange for providing some form of benefit to others. A business is an entity created or organized for the purpose of obtaining money for production activities (for example, a furniture factory), marketing (a car parts store or a distributor) or services (a restaurant or a garage).

Business is an activity that has to be developed, it is a tool that allows us to organize, plan and execute the activities needed to accomplish the goals of a commercial enterprise.

In labor law a company is seen as an organizational unit whose proprietor pursues its economic or ideological purposes. A company may consist of one or more establishments. In the first case, the company comprises an economic component, while the operation constitutes the technical aspect.

The legal status of a company incorporates all legal prerequisites by which it becomes a existing legal entity. Legal forms can be distinguished by some key characteristics.

This also includes the legally required capital in a liability company, the liability or the tax treatment. The legal status also determines whether a company has its own legal personality or whether the partners act separately.

Where a company legal form is undergoes a conversion. In such an instance, there are modifications in the requirements of lenders, the number of shareholders, changes in tax permutations or other significant factors.

There is a distinction between the start-up (pioneer stage), turnover phase (market development, diversification, acquisition, cooperation, and restructuring) and resolution phase. If a company meet its financial obligations to creditors can not, it usually comes to bankruptcy. Companies can also enter the resolution phase, without having reached the sales stage.

A company generally has no defined end point, is not unique, but an ongoing project with limited or unlimited resources. This makes it different from a project, projects can be part of a company.

Business can also be carried online by creating a website where free advice on business is provided, and earn money through advertising placed on it. The conditions of existence of the company are funds, profitability and growth. Liquidity needs to be secured at short notice so as  in a position to meet payment obligations.

 Profitability must be secured in the medium to long term, otherwise the liquidity requirement can not be met. Growth is measured by variables such as profit, revenue or employees. In order to secure liquidity and profitability, a company must at least grow in the market.

Business objectives can be represented in three dimensions. A distinction is made between the economic, social and environmental dimension. A priority of the economic dimension arises from the constitutive features of each company. Within the economic dimension, there key factors which include performance goals, financial objectives and performance targets.

 

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