Enterprise - is the basic unit of a market economy.The structure of the current competition is a mechanism of interaction between consumers, producers and suppliers.Business Economics is a system in which the economic decisions are taken regarding the current organization.It aims to "tripod" market requirements, what, how and for whom to produce.
Business Economics is based on the entity to let only those products that are in demand and are able to make a profit.A production which entails losses should not be produced.
Profit defines revenue and production costs in general.Any excess of the former over the latter is pure profit organization.It serves as proof of the prosperity of the industry.In deciding what to produce, it plays an important role consumer demand.The increase raises its profit organizations.
company - the main link in the economy.For the profitable operation of the market organization should be applied new production technology - develop it.This increases cost effectiveness and reduces costs.It also depends on the current prices of stocks.Economic efficiency - this is the maximum output of the product at the lowest cost at the entrance.
company in a market economy must distribute the finished product among consumers for personal consumption and capital formation.The first depends on the income and food prices.Production is the accumulation - of the profit, which is used to him, prices of resources and lending rates.
Prices for products play a major role in the structure of personal consumption.Prices of stocks determine the size of capital accumulation.
It should be stressed that the economy of the enterprise in the market system - primarily the mechanism of distribution of the product to consumers.She herself does not have any ethical guidelines.It often happens that the economic entities that have managed to amass a huge amount of different resources as a result of business savvy, hype, or inherited, receive large revenues and manage most of the social product.And deprived of property companies that do not have enough "education" and get a marginal profit small share of the national product.
Business Economics is based on:
1) efficient allocation of resources;
2) maximization of profit;
3) meeting the needs of the population;
4) ensuring freedom of entrepreneurship;
5) realization of personal interest when making decisions.
As a result, the conclusion that the company should closely monitor changes in the market economy.And since it can not be provided unlimited production of goods and services must take appropriate decisions about what products should make, and from which should be abandoned.In addition, it is important to track the latest technology to help reduce costs and improve profitability, and thus the profitability of the enterprise.
