What is the purpose of setting up a company?

Generally speaking, an enterprise refers to a legal person or other social and economic organization that uses various factors of production (land, labor, capital, technology and entrepreneurial talents) to provide goods or services to the market in order to obtain profits, and implements independent operation, self-financing and independent accounting.

For the purpose of profit, with the mission of maximizing the interests of investors, customers, employees and the public, products or services are exchanged for income.

Extended data 1, the limited liability of the shareholders of the company determines that the shareholders of the investment company can not only meet the needs of investors to seek benefits, but also limit their risks to a reasonable range and increase their investment enthusiasm.

2. Companies, especially joint stock limited companies, can publicly issue stocks and bonds in the society, raise funds extensively, and facilitate the establishment of large enterprises.

3. The company implements the principle of complete separation of ownership and management rights, which improves the management level of the company.

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