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 talent) to provide goods or services to the market for profit, and implements independent operation, self-financing and independent accounting.

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

There are three basic organizational forms in enterprises: sole proprietorship, partnership and company, and the company-based enterprise is the most important and typical organizational form in modern enterprises.

Extended data:

The three organizational forms of enterprises are as follows:

1, sole proprietorship enterprise

A wholly-owned enterprise refers to an enterprise invested and operated by one person. 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 ID card, and no alias shall be used. According to the relevant provisions of China's current tax law, the income from production, operation and other income obtained by a privately-owned enterprise shall be subject to private personal income tax as required.

2. Partnership enterprises

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

3. Company

The company is a profit-making 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 to meet the needs of socialized mass production in market economy.

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