：
In the category of commodity economy, enterprises, as one of various organizational units, are organic economic entities formed according to certain organizational rules. Generally for the purpose of profit, the mission is to maximize the interests of investors, customers, employees and the public, and to provide products or services in exchange for income. It is the product of social development, and develops with the development of social division of labor. Enterprises are the main body of market economic activities; Under the socialist economic system, the coexistence of various enterprises constitutes the micro-foundation of the socialist market economy. Enterprises have three basic organizational forms: sole proprietorship, partnership and company, and corporate enterprise is the most important and typical organizational form in modern enterprises. Enterprise units are generally self-financing productive units. The so-called "self-financing" means that you bear the consequences of losses and profits and have certain autonomy. Enterprise units are divided into state-owned enterprises and private enterprises. State-owned enterprises are state-owned enterprises. A private enterprise is a business unit owned by individuals.
Institutions are generally public welfare institutions established by the state, but they are not government agencies and are different from civil servants. Under normal circumstances, the state will give financial subsidies to these institutions. Divided into fully funded institutions, such as schools, institutions in balance allocation, such as hospitals, and other independent institutions that are not funded by the state. Enterprises have to spend costs in signing contracts, as well as supervision and incentives. Secondly, on the one hand, enterprise decision-makers often get information from subordinates, on the other hand, the decision-making information of the upper level of enterprises has to be passed on to subordinates. The information transmission in these two different directions will be distorted by the increase of subordinate levels brought about by the expansion of enterprise scale, which will lead to the loss of enterprise efficiency. Thirdly, the subordinate of an enterprise often conceals or transmits the wrong information to the superior for selfish motives, so that the superior can make a decision that is beneficial to the subordinate. In other words, the decisions made by subordinates to superiors only pass on or carry out the parts that are beneficial to them. All these will lead to the loss of enterprise benefits.