1. Any natural or legal person who undertakes to sell composite commodities thereby creates an enterprise.
An individual owns a property. He puts it up for sale or rent. If he finds a taker, he creates an enterprise. Some enterprises are very short-lived. For example, when I decide to rent a space at a flea market to sell objects cluttering my home. Enterprises are also nestled within associations. A charity’s second-hand clothing shop is not an enterprise, but it becomes one by virtue of what it sells. Etc.
2. The enterprise in a personal name is an entity that is economically distinct from its owner and boss.
This owner exchanges his capital contribution with his enterprise for all or part of the net earnings of this enterprise. This boss exchanges with his enterprise the service of his labor for the remuneration of this service. If the personal accounts of the boss and those of his enterprise are one, this is in itself a management fault.
3. The status of owner or member of an enterprise and that of wage-earner of this enterprise are distinct.
The practices of enterprise life are economically mature enough only if they include mechanisms for separating the respective roles and powers attached to the qualities of owner, or member, on the one hand, and wage-earner on the other. The rule is the same if the same individuals perform more than two roles. This is particularly common in some cooperatives where members are both customers and wage-earners of the enterprise.