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The chapter develops a typology of economic agents to aid analysis. Various classifications are discussed, such as primary, secondary and tertiary sectors, public and private, and type of good. Four basic types of economic agent are identified: households, firms, associations and administrations. The point is made that there are sometimes grey areas so examples of economic entities are provided which exhibit characteristics of more than one type. There is a discussion of the features of each type, its sources of finance and revenue, tasks and goals, as well as legal aspects. Special attention is paid to households, associations and administrations as these are rarely covered in the literature on business administration despite the fact that the principles of economic efficiency and effectiveness are as relevant for them as for firms.
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- Individuals and Institutions in the Economy
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