Ticket 1 Enterprises (firms) field of activity and its main characteristics

Business Enterprise: Secondary sector

The secondary sector consists of business enterprises at the second step of the production process. These businesses use raw materials produced from the primary sector to develop into new goods and services. For example, car manufacturers use raw materials to build new cars, which they later supply to customers.

Business Enterprise: Tertiary sector

The tertiary sector involves business enterprises concerned with providing services to individuals.
An important function of a business enterprise is the use of raw materials to produce new goods that will be served to customers. A business also uses its resources to provide services to customers. A business enterprise is always concerned with producing types of goods or offering services that meet the needs and demands of customers. If this need or demand is not met or is relatively small, there is no real purpose for production.


3. Integral efficiency of activity of enterprise and his competitiveness.
One of modern models of enterprise performance evaluation is the Creditworthy Model (CWM) of performance which is the most suitable model for comparison of financial performance of two or more enterprises. The position of the enterprise is determined by cross point of the values that are plotted along the x-axis and the y-axis. The future success of the enterprise is plotted on the x-axis and is
determined by the transformation results of the prediction models (Quick Test, Altman Z-score, Taffler's Model, Creditworthiness Index) and by the transformation of financial ratio indicators' results to the y-axis (Days Receivable Outstanding, Days Short-term Payable Outstanding, Days Inventory Outstanding, Degree of Over-capitalization, Total Indebtedness, Share of Short-term Liabilities, Return on Equity, Return on Sales, Total Liquidity, Current Liquidity
Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation
Competitiveness is directly and proportionately related to productivity and the latter shares the same relationship with efficiency.