Interviewer instructions
<span class="h2">7.6 Battery IV. Characteristics of the economic unit</span>
<br />The purpose of this battery of questions is to identify some important characteristics of the economic units, taking as a starting point the establishment in which the people who are employed perform their main job. Some of these characteristics are: name, proprietary sector, type of activity to which it is dedicated, the way in which it operates (whether or not it is registered under the Law of Corporations, in the case of private companies and businesses, or the way in which the public administration of this country operates), availability of premises and accounting records, as well as the geographic level in which it performs, in the case of private companies and businesses.</p>
<p><span class="em">Question 4</span>
<br />This question is asked to employed persons, in order to find out if the economic unit for which they work has a name.
<br />[Omitted figure]</p>
<p><span class="ital">Name of the economic unit</span>. The trade name, business name or name with which a company, institution or business advertises itself.</p>
<p><span class="em">Question 4c</span>
<br />This question is asked to employed persons who work for private economic units (with the exception of those in the agriculture/livestock, education and health sectors) and who were classified in option 4 or 5 in the last question, to find out in what type of economic unit they work.</p>
<p>[Omitted figure]</p>
<p>Conceptual clarifications:
<br />While it is true that from a literal reading of options 1 and 2, a spontaneous response is expected from the interviewee, without questioning it, it is important that you know the characteristics of the type of economic units considered in each response option, but first it is important to state that:</p>
<p>For tax purposes, a person may perform their economic activities as an individual or as a legal entity, as the laws establish different treatment for each, and this determines the form and requirements for enrollment in the Federal Taxpayers Registry (RFC) and the obligations acquired.</p>
<p>Individual is a person with the capacity to enter into obligations and rights.</p>
<p>Legal entity is a group of people who join with a specific purpose, for example, a corporation, a non-profit organization.</p>
<p>The registration of an economic unit with the RFC indicates the types of rights and obligations to which they are subject, as well as the conformation of the capital stock or their equity. In the case of companies or businesses registered under the scope of the law of corporations, it is the organization, and not the members, that faces the legal or commercial actions the company may assume at any given moment.</p>
<p>In exchange, independent, personal and family economic units are cataloged as individual (companies or businesses must respond personally and directly for the rights and obligations that give rise to legal or commercial actions of their economic unit, and whose capital is private). In other words, these are formal and informal businesses not incorporated as a company.</p>
<p>Based on the foregoing, it is important that you know that option number one groups economic units under the individual system, the second legal entities and the third includes economic units that are not placed under the modality of private businesses to channel them to a sequence for institutions.</p>
<p>[Omitted figure]</p>
<p>Instructions:</p>
<p>1. Independent, personal or family</p>
<div class="i1">- Independent economic units (individuals), regardless of the legality or illegality under which they operate, the activity sector to which they are dedicated or the size of their businesses or activities.<br />- Those who work for independent economic units that operate under the modality of franchise or concession.<br />- Franchise. Business system based on the right to use a trade name and technical, administrative and operative advice to properly operate the business. That is, one of the parties grants the other the license to use its trade name, as well as its knowledge and experience (the know-how), to effectively and consistently operate a business, in order to guaranty homogeneity in the quality and characteristics of the services or goods administered.</div><p>As is evident, in this type of business method, the establishments adopt the same trade name, but have a different proprietary economic unit, which, when registered, requires the payment of a royalty in favor of the franchise owner.</p>
<p>Concession. Legal and administrative act under which a company grants to another the right of use, consumption and exploitation of an establishment for the production or distribution of goods or, as applicable, the provision of a service subject to the pre-established provisions of a commercial contract.</p>
<p>In this case you can see that it adopts its own trade name, which is exploited by a different proprietary economic unit to take advantage of a business or activity, for which it must make a payment and guaranty the quality of specific services.</p>
<p>2. A private sector company or business</p>
<div class="i1">- People who work for an economic unit incorporated as a corporation, regardless of its size and the activity sector to which it is dedicated.</div><p>Corporation (legal entity). Entity that is predominantly economic and whose capital is private, created by law and made up of partners who are obligated to combine their resources or efforts to fulfill a common good.</p>
<p>2. A private sector company or business</p>
<div class="i1">- Those who work for independent economic units that operate under the modality of franchise or concession.</div><p>Franchise. Business system based on the right to use a trade name and technical, administrative and operative advice to properly operate the business. That is, one of the parties grants the other the license to use its trade name, as well as its knowledge and experience (know-how), to effectively and consistently operate a business, in order to guaranty homogeneity in the quality and characteristics of the services or goods administered.</p>
<p>Concession. Understood as the legal and administrative act under which a company grants to another the right of use, consumption and exploitation of an establishment for the production or distribution of goods or, as applicable, the provision of a service subject to the pre-established provisions of a commercial contract.</p>
<p>In this case you can see that it adopts its own trade name, which is exploited by a different proprietary economic unit to take advantage of a business or activity, for which it must make a payment and guaranty the quality of specific services.</p>
<div class="i1">- Those who work for a cooperative society.</div><p>3. None of the above</p>
<div class="i1">- Those who work for economic units that could not be classified in any of the preceding options.<br />- Dilemma. If the information available does not permit you to determine with certainty whether you should circle option 1 or 2, circle the first.<br />- Circle option 3, only if so far you have found that it is not a business, but rather a non-profit institution, but you have not been able to classify the response in the preceding question.<br />- Sequence to follow. If you circle option 1, go to question 4e; if you circle option 2, go to question 4h; if you circle option 3, go to question 4d.</div>