Basic Accounting Knowledge: Business Elements

What are business elements

The so-called business factors refer to various resources invested by enterprises in the process of production and operation. The production and operation of any enterprise must first investment A certain kind and quantity of resources can ultimately produce and operate certain products or provide services. Therefore, business factors are the necessary objective conditions and material basis for enterprises to carry out normal production and operation activities.

Contents of business elements

The business elements of the enterprise mainly include:

1. Land.

In agriculture, land is the basic means of production. It is not only the base of agricultural production activities, but also the labor of agricultural production object And labor means. In industries such as industry and commerce and service, land only plays a role as the base and place of production and operation. Under the current scientific and technological conditions, the function of land cannot be replaced by any other means of production. The economic value of land varies with its texture, fertility and geographical location, and their impacts on the production, operation and economic benefits of enterprises are also different.

2. Labor.

Labor force refers to people who produce products or provide intelligence and services for enterprises. It includes management personnel, technical personnel worker Etc. Labourers are the most active and creative factors, which occupy a dominant position in the factors of productivity. Enterprises are made up of people. Any economic activity of an enterprise must be organized by people, and any of its equipment must be controlled and commanded by people. Therefore, the number and quality of workers, and the organization and allocation of labor force will directly affect the efficiency of the enterprise. In modern society, the quality of workers, their enthusiasm and creativity, to a large extent, determine the future and destiny of enterprises.

3. Capital.

Capital refers to the monetary capital and means of production advanced by enterprises for production and operation in advance, also called principal. A certain amount of monetary capital is one of the necessary conditions for the establishment of an enterprise, and it is also necessary throughout the whole process of enterprise production and operation. In the commodity economy, money is favored by people because it is a special commodity of general equivalents. Any economic activity of an enterprise cannot be separated from monetary capital. In addition, the efficiency of enterprise economic activities is often measured by currency. Therefore, to some extent, it can be said that the goal of enterprise production and operation is to ensure the proliferation of enterprise capital.

The means of production is the manifestation of a certain amount of money, also known as the means of labor, which is the material basis for the production and operation of enterprises. It requires enterprises to purchase money in the market. Like labor, means of production is also the source of creating material wealth, including means of labor and objects of labor. The means of labor are all the material materials and conditions that people use to change or affect the objects of labor in the process of labor. It is by using these means of labor that enterprises can make expected changes in the objects of labor and produce products needed by the market. Therefore, the quantity and quality of means of labor, especially machinery and equipment, and the advanced level of technology have a great impact on the production and operation of enterprises and their efficiency. The object of labor refers to everything that people put labor on in production, which includes natural objects and raw materials. Among them, the grade, reserves, mining difficulty of natural objects, and the variety and quality of raw materials are the key factors that affect the production efficiency and product quality of enterprises. With the development of science and technology, people will find more useful properties of natural objects and create many new materials, which will make the types of raw materials more diversified and the scope of substitution more extensive.

4. Technology.

Technology is the specific application of the knowledge that people have mastered in production, and generally refers to various process operation methods and skills developed according to production practice experience and natural science principles. In addition, it includes corresponding production tools and other material equipment, production process or operating procedures. Technology is often contained in people's minds and displayed through people's limbs and other organs. More importantly, technology is often materialized in the means of production, which is expressed through its quality, variety, performance, etc. The development of science and technology can enable people to operate more machines and equipment, greatly improving labor efficiency. New technologies, new processes and new materials can not only save time, costs and materials, but also increase the total production, create many new products, improve the function of products and open up new markets. Therefore, science and technology are crucial to the survival and development of enterprises. It is precisely because of the rapid development of modern science and technology that a variety of modern consumer goods with complete functions, increasingly advanced and various modern life products have emerged.

5. Information.

Information refers to messages and information that the recipient does not know in advance, and here mainly refers to economic information. Information, together with materials and energy, is called the three pillars of modern science and technology. In today's highly developed market economy, market related information, such as demand types, quantities, product prices, competitors' strength, strategies, new processes, new projects, new products, etc., any one of which is likely to enable an enterprise to quickly get rid of difficulties, new opportunities, and obtain high profits. Because of the great value of information, there are many enterprises specialized in providing information, such as information consulting companies and idea companies.

Under the conditions of modern social mass production, the above business elements of enterprises must be closely combined and effectively allocated in order to give full play to their respective roles and create more profits for enterprises. Among the above elements, land, capital and labor are tangible resources, while technology and information are intangible resources. With the development of social productivity and the progress of science and technology, intangible resources play an increasingly important role in enterprises. Countries with lots of land, labor or capital are not necessarily rich; Conversely, countries that are short of land, capital or labor are not necessarily poor. The reason lies in the exertion and utilization of its resources. Therefore, for the operators of modern enterprises, only considering the amount of land, labor and capital, while ignoring technology and information, will bring disastrous losses to enterprises.