Economic activity as an integral part of the economy

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2018-03-19 08:30:43

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An Integral part of the economy of any society is economic activity as a set of relationships that develop in social and industrial system of the country. Economic activity – activities of individuals and enterprises of various forms of ownership and organization, carried out within the framework of the current legislation associated with the production of or trade, provision of services or execution of certain types of work to meet the social and economic interests not only of the owner but also the workforce.

His definition of the economic activity of the enterprise as a key pillar of the economy, received in Ancient Greece, when first there is a theory about the creation of various benefits for the life of the society and of its development.

The Foundation of any modern state is economic activity of the enterprises for manufacture of various products, as well as organizations engaged in various research and development, scientific research. In addition to the main production and economic activity is carried out as a manufacturing subsidiary who are organizing  sales and services marketing, and after-sales service of products, numerous services and services.

The Modern Economy as economic activity includes different branches of material and non-material production, and is a very complex organism which constantly provides the livelihoods of the whole society and each person separately. All the economic activity of man consists of two key moments – production and distribution. These two activities are inextricably linked, since only the produced products may show the end result as a result of its dissemination to the end customer.

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To solve the main problem of the economy and economic activity in particular, the most important is the determination  most rational use of all resources and proper organization of the distribution of the result to meet the needs of society. For this purpose solved the major issues of the economy.

The First question – what to produce? This is a selection of core benefits to meet the needs of the population. Because resources, both natural and human are limited and needs are unlimited, the task of public authorities and private corporations is to determine the optimal set of goods and services necessary to solve problems of the society.

The Second question – how to produce, by what means? It is a question of human evolution, technological and scientific development. In addressing this question the main thing-to choose the most efficient method of production below with the greatest speed and efficiency to get the results of your investment and resources.

The Third question – for whom to produce? It is necessary to determine the end user, its goals, queries, and possible volumes of consumption. This is a key issue for conducting any production and business activities, as it identifies the efficiency of resource use and costs incurred at all stages of the path to the end user.

These issues involve the conduct of planned economic activities, competent management, and control of the result. For this purpose, enterprises are constantly being statistical, accounting and operational accounting with the analysis of the obtained results.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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