1.Enterprise unit:
An enterprise unit is a business unit comprising one premise or multiple premises, engaging in one kind or multiple kinds of economic activities, deciding its own business strategies and use of funds, etc., possessing business account books, and bearing responsibility for its own profits or losses.
2.Establishment unit:
Establishments consist of individual premises engaging in the production or sale of goods or the provision of services, regardless of whether they are financially independent. Examples include a factory, a store, and a restaurant.
3.Relationship between establishments and enterprise units:
(1)Independently operating enterprise units: Independently operating enterprises with a single premise, such as a sundries store operated by Mr. Wang; here Mr. Wang's sundries store is an establishment, and is simultaneously an independently operating enterprise.
(2)Branch units that have been established in different locations and are directed by a chief management unit constitute enterprise units. For instance, the Far Eastern Department Store has established branches in Taipei, Banqiao, Taoyuan, and Tainan, etc., while the company headquarters located in Taipei bears responsibility for personnel affairs, accounting, finance, and management matters. Here the Taipei headquarters is the enterprise's chief management unit, and department stores in different locations constituted the enterprise's branch units. The Far Eastern Department Stores Co., Ltd. comprises its Taipei headquarters and department stores in different locations, and is a single enterprise unit.