importance and structuring

Businesses are the second largest private sector benefit ( the first benefit is employment generation for the production of goods and services) . The population is very diverse businesses , from giant corporations , with over a thousand employees whose sales are in the millions , to small businesses that are motor of a regional economy in all countries .

This diversity makes it necessary to perform the classification of companies based on certain criteria, such as legal structure , type of products or services offered , size, etc. .

Unit 3 explains the basics of the business, the importance that it has on the economy and the steps being experienced in its structure.

Individuals choose the quantities of labor , land, capital and entrepreneurial skills that will rent or sell the company in exchange for wages , rents, interest and profits . Also choose how they will spend their income between different types of goods and services that the market provides.

Markets of goods and factors determine this election, both individuals and businesses .

Flows illustrated with arrows in blue are flows that are identifiable and tangible in the economy: the flow of production factors of individuals companies and the flow of goods and services from businesses to individuals.

The flows highlighted in red are generated payments to individuals companies and flow of spending on goods and services from individuals to businesses.
As can be seen , the importance that the company has in the market is crucial so that you can give the movement of all factors of production , the decisions of individuals, the slopes of the markets and prices , as long as an organization is reflected well defined in its structure to achieve balance.