The Role Of Business In Development Of The Company

July 10, 2014

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Modern economics defines the economic system as a set of economic relationships in society, ie set of economic relationships, not only of enterprises and companies, but also every member of society, citizen. Depending on the ownership of the means of production, ways of coordinating economic activities and the method of distribution of wealth, it is customary to distinguish between such economic relations: patriarchal (traditional) team (administrative or planned) and market. As part of this work is necessary to clarify terminology and to clarify the understanding of these types of economic relations. Under the 'traditional' economic relations should be understood as relations developing due to traditions of a certain community of people (family, clan, tribe, etc.). In such communities the means of production belong to the community, the management and coordination of economic activities by the head of the community, get it right in keeping with tradition, the distribution of benefits is also in keeping with tradition, no account invested labor. Such a relationship can be seen today in the household, farm and family craft workshops, etc., as well as in some tribes living in remote places around the world. In addition, each able-bodied member of society contributes to the creation of wealth, and their distribution is in accordance with the accepted way of life, of tradition. 'Administrative' economic relations are characterized by: membership of the means of production group or society, economic management, through planning and hard teams, designated by the sponsor; distribution of goods in accordance with Regulations, subject to sub work.