Explanatory Notes on Main Statistical Indicators
Business Climate Index It is a qualitative index which, by adding up certain quantitative figures, reflects the status or tendency the investigated group or social economic phenomenon is in. The difference between the proportion of the enterprises whose business climate indices show ¡°good¡± or ¡°upward¡± or ¡°optimistic¡± and that of those whose business climate indices show ¡°bad¡± or ¡°downward¡± or ¡°not optimistic¡± is obtained by working out the difference between their major business earnings, usually expressed in positive numbers. The critical point of the business climate index is 100, with the scope between 0 and 200. When it is above 100, the index show that the economic status is in an upward trend or being ameliorated, and that the condition is in good health. When it is below 100, the index show that the economic status is in a downward trend or being deteriorated, and that the condition is in bad health. The formula for calculating business climate index is:
Business Climate Index = The Proportion of ¡°Good¡± Enterprises / The Proportion of ¡°Bad¡± Enterprises *100 + 100
Entrepreneur Confidence Index It indicates the feeling about, and confidence in, the macroeconomic environment on the part of the entrepreneur, reflected by his or her interpretation, opinions, judgment, and expectation (usually expressed as ¡°optimistic¡±, ¡°ordinary¡±, or ¡°not optimistic¡±) of the enterprise¡¯s external market economic environment and general policies.
Enterprise Business Climate Index It indicates the enterprise¡¯s production and management status, reflected by the entrepreneur¡¯s judgment and expectation (usually expressed as ¡°good¡±, ¡°ordinary¡±, or not good¡±) of the general situation the enterprise¡¯s production and management are in.
Single Item Business Climate Index It is designated by putting the single item name in front of ¡°business climate index¡±, for example, order for product business climate index.
Enterprise Group refers to a group of companies linked up by capital and regulated by a group charter of business behavior. It is a federation, considerable in size, of enterprise legal persons such as parent and child companies, share-holding companies, and / or other kinds of enterprises or institutions. An enterprise group, however, does not have the legal person status. Institution and social group legal persons may also become members of an enterprise group.
Group Company It refers to those enterprises, which play the most important part in an enterprise group. It is linked up by various kinds of relations including investment, and coordinated production and management. It has a great influence over other members of the group. In the parent-child hierarchy of the enterprise group, the group company serves as the parent, dominating all other share-holders. The group company is the representative of the enterprise group.
Enterprise Group Child Company It refers to the legal person of an enterprise whose entire shares or share rights are in the hand of the parent company of the group.
Major Business It refers to the nature of the major business activities the enterprise group is engaged in. An enterprise group is generally engaged in different business activities. The three products or business activities that bring in the largest proportions of earnings usually determine the major business.