Business Economics and Corporate Legal Structures
Production and Economic Development
Production is the human action of obtaining goods and services that will be used to meet needs, directly or indirectly. Within production are included manufacture, storage, distribution, and transportation.
Utility is the ability of a good or service to satisfy a need. Its types include:
- Technical/Economic
- Shape
- Space
- Temporal
Industrialization occurs when an economy based on the primary sector undergoes development that leads to a more relevant secondary sector. Tertiarization occurs if the process continues and the third sector becomes increasingly important.
Humanity, Nature, and Globalization
Relevance of man and nature:
- Close relationship with little change.
- Submission to the nature of transformation.
- Withdrawal from nature.
Globalization involves international trade in goods and services, capital movements, the movement of people, and the internet.
The Company as an Economic Unit
A company is the economic unit of production of goods and services whose mission is to meet needs through well-organized resources, with the objective of maximizing profit.
The Production Process:
- Inputs: Raw Materials (MP), Labor (MO), machinery, and money.
- Process: Company processing and organization.
- Outputs: Products and profits.
Classification Criteria
- Size: Number of employees, turnover, net profits, and net assets.
- Capital Ownership: Private, public, and mixed.
- Geographical Area: Local, regional, national, and international.
Legal Forms and Business Entities
Sole Proprietorship: Includes individual entrepreneurs and private civil societies.
Corporate Companies: Includes public civil societies, partnerships, and corporations of social interest.
Types of Corporate Personality
- Personality: Simple partnership and limited partnership.
- Capitalists: Limited by shares, limited liability, SLUE, SA, and labor societies.
Liability Structures
Limited Liability: A type of business entity in which liability is limited to the capital contribution. In the case of indebtedness, partners do not answer with their personal assets.
Unlimited Liability: In this mode, the personal assets of partners will meet the company's debts if the assets are insufficient. It is termed a personal and collective society par excellence.
Mixed Liability: There are two types of partners: those who respond to the debt limit and those who do so with all their assets. Examples include limited partnerships and partnerships limited by shares.
Legal and Market Frameworks
Heritage: A set of assets, rights, and obligations of a financial nature that belong to one person or entity.
Mercantil: Refers to all relationships that occur in the market.
Commercial Code: A systematized set of legal rules governing the economic behavior of citizens and businesses.
Multinationals: Firms that extend their activity across several countries.
Agribusiness: Economic sector companies engaged in the production and marketing of agricultural products.