The Theory Of Enterprise Organization And Enterprise Rights

The firm can be the most critical institutional creature in history. What we discuss inthis article are the nature of the firm as the basic foundation and the actual andidealistic rights sharing agreement of the firm as the abstract and logical reasoning.After reviewing the juristic and economic theories concerning the ownership of thefirm, we describe and conclude this particular organization and the rights with regardto it. From the point of view of the firm’s contractual theory what consider firm as thecombine of two factors, we find that the financial capital owner and the humanresources owner share out the rights of firm in fact and the rights sharing agreementbetween both sides can be equilibrium. To discuss the idealistic issue about theefficiency of the firm, we look back on the historical firm owner being the union ofrights, obligations and power. And then we try to set up a paradigm to evaluate thejuristic and legislative issues about the firm in general.