enterprise

Development

Theword"enterprise"inmodernChineseoriginatesfromJapanese.Likesomeotherbasicvocabularycommonlyusedinthefieldofsocialsciences,itisaChinesecharactervocabularytranslatedduringthelarge-scaleintroductionofWesterncultureandsystemsaftertheMeijiRestorationinJapan.AftertheReformMovement,theseChinesecharactervocabularieswereintroducedinlargequantitiesfromJapanese.modernChinese.(Theterm"business"isrelatedandsimilarinusagetothewordenterprise.)

DuringtheperiodofplannedeconomyinmainlandChina,"enterprise"wasacommontermusedinparallelwith"institution".Inthe1978editionof"CiHai"[2],theinterpretationof"enterprise"is:"anindependentaccountingeconomicunitengagedinproduction,circulationorserviceactivities";theinterpretationof"institution"is:"undertheleadershipofstateagencies,economicaccountingisnotimplementedTheunit".

Theusageoftheterm"enterprise"haschanged.

Themorecommonusagereferstovariousindependent,profit-makingorganizations(whichcanbelegalpersonsornot),andcanbefurtherdividedintocompaniesandnon-corporateenterprises,thelattersuchaspartnershipsandindividualproprietorshipsEnterpriseetc.Thereisalsoaspecialname,whichisdescribedintheauctionlaw.The"auctioneer"intheauctionlawreferstotheauctioncompany.Forexample,theworldChineseauctioneerreferstotheworldChinesebusinessauctioncompany,notacertain"people".

Discrimination

LegalDefinition

AccordingtoChineselaw,companiesrefertolimitedliabilitycompaniesandstocklimitedliabilitycompanies,whichhavealltheattributesofanenterprise.

Therefore,everycompanyisanenterprise,butnotnecessarilyanenterprise.Acompanyisjustanorganizationalformofanenterprise.

Enterprisesareinterpretedinthe"ModernChineseDictionary"as:departmentsengagedineconomicactivitiessuchasproduction,transportation,andtrade,suchasfactories,mines,railways,companies,etc.

Article1ofthe"EnterpriseIncomeTaxLawofthePeople'sRepublicofChina"passedonMarch17,2007hasthisdescription:"IntheterritoryofthePeople'sRepublicofChina,enterprisesandotherorganizationsthatobtainincome(thefollowingEnterprises)aretaxpayersofcorporateincometaxandpaycorporateincometaxinaccordancewiththeprovisionsofthislaw.Soleproprietorshipandpartnershipenterprisesdonotapplytothislaw."

Fromtheaboveexplanationsandlegalprovisions,wecansee:FirstofallAnenterpriseisakindofsocialorganization(thatis,adepartment,buttheword"department"hasastrongplannedeconomycolor,whichseemsabitoutdated);secondly,theenterpriseisengagedineconomicactivities,thatis,itcanprovideservicesorproductstothesociety;finally,theenterpriseistoobtainIncomeisthepurpose,thatis,profitisthepurpose.

Company,inthe"ModernChineseDictionary",isexplainedas:akindofindustrialandcommercialorganizationthatmanagestheproductionofproducts,thecirculationofcommodities,orcertainconstructionundertakings.

Article2ofthe"CompanyLawofthePeople'sRepublicofChina"revisedonOctober27,2005hasthisdescription:"ThecompanymentionedinthislawreferstoalimitedcompanyestablishedinChinainaccordancewiththislaw.Liabilitycompaniesandjointstocklimitedcompanies.”

Itcanbeseenthatwhentheword“company”isusuallyused,itsmeaningisbroader.Inmanycases,soleproprietorshipsandpartnershipsarealsocalledcompanies.However,inthelegalprovisionsIn,companyrefersonlytolimitedliabilitycompaniesandjointstocklimitedcompanies.Accordingtothelegalmeaningofthecompany,thefollowingdefinitionmaybemoreappropriate:asocialorganizationthatindependentlyassumescivilliabilityandengagesinproductionorservicebusinesses.

BusinessesandEnterprises

Corporateunitsaregenerallyself-financingandproductiveunits.Theso-called"self-financing"means:tobeartheconsequencesoflossesandprofits,andtohaveacertaindegreeofautonomy.Enterpriseunitsaredividedintostate-ownedenterprisesandprivateenterprises.State-ownedenterprisesareenterprisesownedbythestate.Aprivateenterpriseisanenterpriseunitownedbyanindividual.

Publicinstitutionsaregenerallyinstitutionswithacertainpublicwelfarenaturesetupbythestate,buttheyarenotgovernmentagenciesandaredifferentfromcivilservants.Undernormalcircumstances,thestatewillprovidefinancialsubsidiestotheseinstitutions.Itisdividedintofull-fundedinstitutions,suchasschools,etc.,differential-fundedinstitutions,suchashospitals,etc.,andanotherisautonomousinstitutions,whicharepublicinstitutionsthatarenotallocatedbythestate.

English

【enterprise】Anenterpriseisacompanyorbusiness,oftenasmallone

【Chinesetranslation】Enterprisebusinessunit:ItcanbeacompanyorCommercialstoresoftenrefertothesmallestbusinesses.InChina,itcanrefertoself-employedhouseholds.

【company】Acompanyisabusinessorganizationthatmakesmoneybysellinggoodsorservices

【Chinesetranslation】Corporatebusinessenterprise:relyingonthebusinesstosellgoodsorservices,witharelativescaleCommercialorganizationforprofit-makingpurposes.Mainlyreferstosellers.

【business】Abusinessisanorganizationwhichproducesandsellsgoodsorwhichprovidesaservice

【Chinesetranslation】Largemerchants:large-scaleorganizations,manufactureandsellgoods,orprovideAbusinessservice.Mainlyreferstomanufacturersandsellers.

Note:Duetodifferencesinvocabularyusagearoundtheworld,manyvocabulariesareusedbyconvention.Differentcountriesandregionshavedifferentusagecharacteristics.

【company】Usuallyreferstolargemultinationalcompanymanufacturers,mainlymanufacturing.

[business]usuallyreferstoserviceprovidersorsuppliers,mainlyintheserviceindustry.

Inthelate20thcentury,themeaningoftheterm"enterprise"changedinthecontextofmainlandChina'sreformandopeningup,modernization,andtheinfluxofnewconceptsinthefieldofinformationtechnology.Ontheonehand,alargenumberof"enterprise"undertheunplannedeconomicsystemhasemergedinlargenumbers;ontheotherhand,insomenewconcepts,themeaningisnotlimitedtocommercialorprofitableorganizations.ThisusagemainlycomesfromthetranslationoftheEnglishword"enterprise".Therefore,theterm"enterprise"thatappearsinpublicmediahastwouses.

Themorecommonusageenterprisereferstoavarietyofindependent,profit-makingorganizations(itcanbealegalpersonornot),andcanbefurtherdividedintocompaniesandnon-corporateenterprises,thelattersuchaspartnerships,Soleproprietorship,individualindustrialandcommercialhouseholds,etc.

Anotherusageisclosetoorganization,andcanbeusedtorefertocompanies,schools,socialgroups,andevengovernmentagencies.Thelatterusagemainlyappearsinsomepropernounsinthefieldofinformationtechnologyapplications,suchasenterpriseapplications,enterprisecomputing,enterpriseintegration,enterpriseengineering,andenterprisearchitecture(enterprisearchitecture),enterprisemodeling(enterprisemodeling),etc.

Abriefhistory

Development

Withthedevelopmentofproductivityandtheprogressofsociety,thecorporateformhasalsobeencontinuouslydevelopedandimproved.Theevolutionoftheenterprisehasmainlyexperiencedthreestages.

1.Theperiodofworkshophandicraft

Thisreferstotheperiodfromthecottageindustryinthefeudalsocietytotheworkshophandicraftindustryintheearlystageofcapitalism.Fromthe16thcenturytothe17thcentury,thefeudalsocialsystemofsomeWesterncountrieschangedtoacapitalistsystem.Theprimitiveaccumulationofcapitalismaccelerated,andfarmersweredeprivedoftheirlandonalargescale,whichcausedthecottageindustrytocollapsesharplyandbegantotransformintoacapitalistworkshopsystem.Thehandicraftindustryistheembryonicformoftheenterprise.

2.Theperiodoffactorysystem

Inthe18thcentury,Westerncountriessuccessivelylaunchedtheindustrialrevolution,andthewidespreadadoptionoflargemachineslaidthefoundationfortheestablishmentofthefactorysystem.In1771,theBritishRichardArkwright(RichardArkwright1732-1792)foundedthefirstcottonyarnfactoryinCloneFord.ThefactorysystemwasgenerallyestablishedinBritain,Germanyandothercountriesinthe1930sand1940s.Themaincharacteristicsofthefactorysystemare:theimplementationoflarge-scaleconcentratedlabor;theuseoflargemachinestoimproveproductionefficiency;theimplementationofthesystemofhiringworkers;thedeepeningoflabordivisionandthesocializationofproduction.

3.Themodernenterpriseperiod

Attheendofthe19thcenturyandthebeginningofthe20thcentury,withthetransitionfromliberalcapitalismtomonopolycapitalism,thefactoryitselfhasundergonecomplexandprofoundchanges;Technologyhasenabledrapiddevelopmentofproduction;thescaleofproductioncontinuestoexpandandcompetitionhasintensified,resultinginlarge-scalemonopolies;managementrightsandownershiphavebeenseparatedtoformaprofessionalmanagementclass;ascientificmanagementsystemhasbeengenerallyestablishedandaseriesofscientificmanagementhasbeenestablishedTheory,thusmakingtheenterprisematureandbecomeamodernenterprise.

Classification

(1)Dividedintoindividualproprietorship,partnership,andcompanybasedontheinvestor’smethodofcapitalcontributionandliability.Corporateenterprisesarefurtherdividedintolimitedliabilitycompaniesandjointstocklimitedcompanies

(2)Accordingtothedifferentregionsofinvestors,theyaredividedintodomestic-fundedenterprises,foreign-fundedenterprises,andHongKong,Macao,andTaiwan-investedenterprises.

(3)Accordingtotheownershipstructure,itcanbedividedinto:state-ownedenterprises,collectiveownership,privateenterprisesandforeigncapital.

(4)Accordingtotheshareholders’responsibilitytothecompany,itisdividedinto:unlimitedliabilitycompany,limitedliabilitycompany,andjointstocklimitedcompany.

(5)Accordingtothecreditrating,itcanbedividedinto:RenheCompany,CapitalCooperationCompany,RenheJointCapitalCompany.

(6)Accordingtothetypeofcompanystatus,itcanbedividedintoparentcompanyandsubsidiarycompany.

(7)Accordingtothescale,itcanbedividedinto:superlargeenterprises,largeenterprises,mediumenterprises,smallenterprisesandmicroenterprises.

(8)Accordingtoeconomicsectors,itcanbedividedinto:agriculturalenterprises,industrialenterprisesandserviceenterprises,etc.

(9)Accordingtothehealthoftheenterprise,itcanbedividedinto:relativelyhealthyandadaptableenterprises,military-basedenterprises,resilience-regulatingenterprises,andrelativelyunhealthypassiveandenterprisingenterprises,andstop-and-goprogressiveenterprises.Enterprises,over-expansionenterprises,over-managemententerprises.

Nature

In1937,thearticle"TheEssenceofEnterprise"publishedbytheAmericaneconomistR.H.Coaseisconsideredtobethebeginningofthediscussiononthisissue..

Priortothis,whatisthenatureoftheenterpriseitselfwasaquestionthatwasignoredbytraditionalmicroeconomicstheories.Intraditionalmicroeconomictheories,theproductionprocessofthemanufacturerisregardedasa"blackbox",thatis,theenterpriseisabstractedintoa"blackbox"thatpursuesprofitmaximizationfrominputtooutput.

Aboutthenatureoftheenterprise.Westerneconomistshavedifferentviews.Therearealsosomedisputesbetweeneachother.SomewesterneconomistsmainlyanalyzethenatureofenterprisesfromtheperspectiveoftransactioncostsemphasizedbyCoase.

Anytransactioncanberegardedasacontractreachedbybothpartiestothetransaction.Theso-calledtransactioncostcanberegardedasthecostsurroundingthetransactioncontract.AccordingtoCoaseetal.,atypeoftransactioncostarisesfromthelosscausedbyaccidentalfactorsfacedbybothpartiestothetransactionwhensigningthecontract.Theseaccidentalfactorsareeitherbecausetheycannotbeforeseeninadvanceandarenotwrittenintothecontract,oralthoughtheycanbeforeseen,theycannotbewrittenintothecontractbecauseoftoomanyfactors.Anothertypeoftransactioncostisthecostofsigningthecontract,aswellasmonitoringandexecutingthecontract.

SomeWesterneconomistsbelievethatenterprises,asanorganizationalformofproduction,are,toacertainextent,asubstituteforthemarket.Twoextremesituationscanbeenvisaged.Inanextremecase,eachtypeofproductionisdonebyasingleindividual,suchasapersonmakingacar.Inthisway,thispersonhastotradewithmanysuppliersofintermediateproducts,andalsowiththedemandersofhisownproducts.Inthiscase,alltransactionsareconductedbetweenmanyindividualsthroughthemarket.Attheotherextreme,allproductionintheeconomyiscarriedoutwithinalargeenterprise.Forexample,acompletecarisproducedinsidethisenterprisewithoutanyintermediateproducttransactionsthroughthemarket.Itcanbeseenthatthesametransactioncanbeconductedthroughtheorganizationalformofthemarketortheorganizationalformoftheenterprise.Thereasonwhytheenterpriseexists,orthattheenterpriseandthemarketcoexistatthesametime,isbecausesometransactionsarecarriedoutatalowercostintheenterprise,andsometransactionsarecarriedoutatalowercostinthemarket.

Intermsofbuyingintermediateproductsinthemarket,sincealargenumberofmanufacturersgenerallybuyfromafewsuppliers,thisisconducivetothesesupplierstoachieveeconomiesofscaleandreductioninproductioncost.Moreover,thepressureofmarketcompetitionamongsuppliersofintermediateproductshasforcedsupplierstoworkhardtoreduceproductioncosts.Inaddition,whenafewsuppliersfacealargenumberofdemandersforintermediateproducts,thesesupplierscanavoidpossiblelossescausedbyunstabledemandduetolimitedsales,therebymaintainingastableoverallSales.

Firstofall,manufacturersneedtospendtransactioncoststobuyintermediateproductsinthemarket,whichincludethecostsoffindingsuitablesuppliers,signingcontracts,andsupervisingcontractimplementation.Ifthemanufacturercanproducepartoftheintermediateproductswithintheenterprise,partofthetransactioncostcanbeeliminatedorreduced,andthequalityoftheproductcanbebetterguaranteed.Secondly,ifwhatamanufacturerneedsisaspecialtypeofspecializedequipment,andthesupplierisgenerallynotwillingtomakespecializedinvestmentandproductiononaproductwithonlyonebuyer,becauseoftheriskofthiskindofspecializedinvestmentbigger.Therefore,manufacturerswhoneedthisspecializedequipmentneedtosolvetheproblemofspecializedequipmentwithintheenterprise.Finally,themanufacturerhiressomeemployeeswithspecializedskills,suchasspecializedproductdesign,costmanagement,andqualitycontrolpersonnel,andestablisheslong-termcontractualrelationshipswiththem.Thisapproachismoreadvantageousthanpurchasingthecorrespondingservicesfromothermanufacturers,therebyalsoeliminatingorreducingthecorrespondingtransactioncosts.

Westerneconomistsfurtherpointedoutthatthemainfactorthatcausestransactioncoststodifferbetweenthetwoorganizationsofthemarketandtheenterpriseliesintheincompletenessofinformation.Duetotheincompletenessoftheinformation.Eitherpartytothecontractwilltrytocollectandobtaininformationthatitdoesnothave,tomonitorthebehavioroftheotherparty,andtrytorestraininadvanceandpunishtheotherparty'sbreachofcontractafterthefact.Allthesepracticeswillincurtransactioncosts.Sincethesepracticeswilltakedifferentformsinthemarketandtheenterprise,thecorrespondingtransactioncostswillalsobedifferent.Inparticular,undertheconditionofasymmetricinformation,inthemarkettransactionprocess,theabove-mentionedpracticescausedTransactioncostsareoftenveryhigh.Therefore,throughtheorganizationofenterprises,somemarkettransactionscanbeinternalized,therebyeliminatingorreducingthehightransactioncostsofsomemarkettransactions.

Althoughtheinternaltransactionsofenterprisewilleliminateorreducepartofthemarkettransactioncosts,butatthesametimeitalsobringstheuniquetransactioncostsoftheenterprise.Themainreasonforthisdefectintheenterpriseisalsotheincompletenessofinformation.Specifically,firstofall,therearevariouscontractualrelationshipswithintheenterprise,includingthecontractualrelationshipbetweentheenterpriseandthelaborer,thecontractualrelationshipbetweentheenterpriseandthemanager,andsoon.Companiesmustsupervisetheworkoftheworkers,productsalesmen,andmanagerstheyemploy,andatthesametimeinducethemtoworkhardfortheenterprise.Therefore,companieshavetospendcostsinsigningcontracts,aswellasinsupervisionandincentives.Secondly,ontheonehand,businessdecision-makersoftenneedtoobtaininformationfromthelowerlevel,ontheotherhand,thedecision-makinginformationoftheupperleveloftheenterprisemustberealizedbypassingittothelowerlevel.Thetransmissionofinformationinthesetwodifferentdirectionswillbedistortedduetotheincreaseinthelevelofsubordinationbroughtaboutbytheexpansionofthescaleoftheenterprise,whichwillleadtothelossofenterpriseefficiency.Third,thesubordinatesoftheenterpriseoftenconcealortransmitwronginformationtotheirsuperiorsoutofself-interestedmotives,sothatthesuperiorscanmakedecisionsthatarebeneficialtothesubordinates.Or,thedecisionmadebythesubordinatestothesuperiorsonlytransmitsorexecutesthepartsthatarebeneficialtothem.Thesewillleadtothelossofcorporateefficiency.Thisshowsthattheexpansionofenterprisesislimited.AccordingtoCoase'stheory,thescaleofanenterpriseshouldbeexpandedtosuchapointthatthecostofaddinganotherinternaltransactionatthispointisequaltothecostofconductinganexchangethroughthemarket.

Regulations

TheState-ownedAssetsLawofthePeople’sRepublicofChina

TheCompanyLawofthePeople’sRepublicofChina

InterimRegulationsontheSupervisionandAdministrationofState-ownedAssetsofEnterprises

ProvisionsoftheSupremePeople'sCourtonSeveralIssuesConcerningtheApplicationofthe"CompanyLawofthePeople'sRepublicofChina"(1)

ProvisionsoftheSupremePeople'sCourtonSeveralIssuesConcerningtheApplicationofthe"CompanyLawofthePeople'sRepublicofChina"(2)

ProvisionsoftheSupremePeople’sCourtonSeveralIssuesConcerningtheApplicationofthe"CompanyLawofthePeople'sRepublicofChina"(3)

ProvisionsoftheSupremePeople'sCourtonSeveralIssuesConcerningtheApplicationofthe"CompanyLawofthePeople'sRepublicofChina"(4)

SeveralProvisionsRegardingLawyersActingasCorporateLegalCounsel

AdministrativeMeasuresforState-ownedEnterpriseLegalCounsel

RegulationsontheRegistrationandAdministrationofLegalRepresentativesofEnterpriseLegalPersons

ImplementationRulesoftheRegulationsofthePeople’sRepublicofChinaontheAdministrationofEnterpriseLegalPersonRegistration

LawofthePeople’sRepublicofChinaonSoleProprietorship

PartnershipEnterpriseLawofthePeople’sRepublicofChina(Revisedin2006)

ForeignEnterpriseLawofthePeople’sRepublicofChina

ImplementationRulesofthePeople’sRepublicofChinaForeignCapitalEnterpriseLaw

LawofthePeople’sRepublicofChinaonSino-foreignJointVentures

LawofthePeople’sRepublicofChinaonSino-foreignJointVentures

ImplementationRegulationsofthePeople’sRepublicofChinaonSino-ForeignJointVentures

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