What does the entity enterprise mean?

Entity enterprise refers to an economic organization that is engaged in production and business activities independently, has certain self-retained funds, implements independent economic accounting, operates independently, is responsible for its own profits and losses, can establish economic ties with other economic organizations, sign economic contracts, and has legal person status.

According to the Company Law of People's Republic of China (PRC), the main forms of companies are unlimited liability companies, limited liability companies, joint-stock companies and joint-stock companies, which are different from non-profit social organizations and institutions. Companies stipulated in China's current company law are divided into limited liability companies and joint stock limited companies.

Extended data

Market economy requires equal market subjects to follow the principle of equivalent exchange; Through fair competition, we can obtain and provide goods from the market, promote the rational flow of the whole market, optimize the structure and rationally allocate resources. The requirements of market economy determine that market subjects must have clearly defined property rights and must be independent and equal.

With its unique nature, the legal person system makes the legal person play a major role in the market economy. As a legal person, the company's characteristics fully meet the requirements of market economy, which will inevitably make the company the main body of market economy.

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