Business economics is concerned with economic issues and problems related
to business organization, management, and strategy. Issues and problems
include an explanation of why firms emerge and exist, why they expand—
horizontally, vertically, and, especially, the role of entrepreneurs and
entrepreneurship, the significance of organizational structure, the relationship
of firms with the employees, the providers of capital, the customers and the
government. It is a field in applied economics, which uses economic theory
and quantitative methods to analyse business enterprises and the factors
contributing to the diversity of organizational structures and the relationships
of firms with labour, capital and product markets.