The Logic of a Business Enterprise
A business enterprise has a name and may have a legal structure
Every business has a name or some label to identify the business. There is usually a requirement to structure a legal business entity. The business enterprise provides a structure for a business as corporation, company, institute, government agency, association, partnership, individual proprietorship, etc. The enterprise can be named to identify the business and provides the structure within which to describe a business.
An enterprise defines the scope of results to be produced by a business
The logical definition of business is “the utilization of capital in performance to produce value in results”. A business enterprise then also should provide the business structure of results and performance solutions that define the business. The business enterprise then is a business structure that utilizes capital in performance to produce value in results.
The enterprise provides an identifier and label for an integral set of business results, and the performance solutions utilized, that form the enterprise business structure. Every result produced within a business is assigned to the enterprise that contains the business structure. Every performance solution utilized within the business is assigned to the enterprise that contains the business structure.
An enterprise may have superior or subordinate enterprises
We see with corporations that there are parent companies, subsidiary companies, independent business units, etc. The label enterprise enables us to be flexible. An enterprise can be part of a superior enterprise or may manage it own results and have additional results produced by any number of subordinate enterprises.
You may have a company or other enterprise that produces a certain set of business results. Your enterprise may have branches or business units that have their own set of business solutions to utilize to produce their business results. The branch or business unit can be organized as a sub-enterprise with its own business structure to produce one result under the main enterprise.
Your enterprise may undertake projects or campaigns that have their own set of business solutions assigned or seconded to be utilized to produce specific project or campaign results. The project or campaign can be organized as a sub-enterprise with its own business structure to produce a closed out project or campaign result in the main enterprise.
This enables us to have an enterprise (sub-enterprise) identifier for results produced and performance solutions utilized in each time period.
An enterprise can be an information entity to identify any business endeavor
The enterprise as a set of enterprises can include the business enterprise itself, and related superior and subordinate enterprises. The enterprise as an information set can identify and control all enterprises that interact with the business enterprise. Every enterprise is a identifier for a business structure that utilizes capital in performance to produce value in results. This can include suppliers that produce input results received by the enterprise, customers that utilize final results produced by the enterprise, business partners that produce results in conjunction with the enterprise, and solution providers that provide business solutions utilized to produce enterprise results.
The definition of business enterprise is “a business structure that utilizes capital in performance to produce value in results”
The logical business definition is “the utilization of capital in performance to produce value in results”. The enterprise provides the legal business structure and the business structure of results and performance solutions. Therefore, the logical business enterprise definition is “a business structure that utilizes capital in performance to produce value in results”
