Tarkus Business Solution

Posts Tagged ‘productive sector’

The role of employers has been viewed from two perspectives:

Employer risk doctrine that the role of entrepreneurship is to assume the risk of the production process.

The doctrine of employer control, according to which employers have a role of leadership, organization and control of economic processes.

The employer is an insurance company revenues and profits are compensation for the typical business risks (eg as a result of fluctuations in supply and demand)
Proponents of the doctrine of the two previous criticize them shows that risk takers are the capitalists and landlords. Therefore, the leadership and control of the employer is twofold:
• In relation to the consumption sector, employers interpret your desires, tastes and needs.
• In relation to the productive sector, orders coordinate other production factors.

Every factor of production, acting individually, would provide poor performance of the combined effect of all under the direction of the employer. Therefore it must be associated with productivity obtained indirectly, through coordinator intervention. In this case, the benefit is a reward for certain functions.
In addition to the doctrine of employer control, can be considered as a contribution to Schumpeter. According to this, the employer is the main character capitalist economic development. According to him, the economic system tends to equilibrium where the revenue is equal to the costs and benefits of employers tend to be reduced to a salary from the management. However, this balance is broken when the company completes an innovation that allows the situation of temporary monopoly profits extraordinary. The benefit will be a prize for innovation, which because it is the essence of entrepreneurship.