Entrepreneurial firm Business entities are both individuals and legal entities. Coursework: entrepreneurial company and its types

Ministry of Education Russian Federation

Moscow State University of Economics, Statistics and Informatics

COURSE WORK

Discipline: “Business Fundamentals”

Topic: “ENTREPRENEURSHIP COMPANY AND ITS TYPES.”

Completed by: Zemtsova
Tatyana Pavlovna
INS 0070-00839
Checked by: Morozov
Vladimir Alexandrovich

2005

Content

Page
Introduction……………………………………………………………… 3
1. What is a company………………………………………………………. 4
2. Private entrepreneur……………………………………….. 6
3. Partnership (partnership)……………………………………… 8
4. Corporation (limited liability companies).... 9
4.1. Small business……………………………………………. eleven
4.2. Joint stock company (closed and open)…………… 13
4.3. Limited liability company…………….. 14
4.4. Joint venture……………………………………………………... 16
4.5. Shares and bonds of companies…………………………………. 17
5. Cooperatives…………………………………………………………………… ……….. 19
6. State enterprises……………………………………………………… 21
Conclusion…………………………………………………… ………. 24
List of references…………………………….. 26

Introduction

Any nation is proud of the fruits of the activities of its entrepreneurs. But any nation and each of its individual representatives are proud of their involvement in the implementation of any specific entrepreneurial idea.
Entrepreneurship as one of the specific forms of manifestation of social relations contributes not only to increasing the material and spiritual potential of society, not only creates favorable soil for the practical implementation of the abilities and talents of each individual, but also leads to the unity of the nation, the preservation of its national spirit and national pride.
A major banker and small store owner, the owner of a controlling stake in a joint stock company and real estate dealer, a farmer and one of the owners of an insurance company. All of these individuals are united by belonging to a special segment of society - entrepreneurs. Their occupation can, accordingly, be defined as entrepreneurship. Entrepreneurship is the free initiative of people in economic activity, it is a way of organizing economic forces. The existence of entrepreneurship is a prerequisite for the functioning of the market. The next stage should be a deeper understanding of the essence of entrepreneurship and its functions in the modern economic system, conditions and types of entrepreneurial activity.
The development of entrepreneurship plays an indispensable role in achieving economic success and high growth rates of industrial production. It is the basis for the innovative, productive nature of the economy. Entrepreneurship contributes to the development of competition and “marketization” of the economy, strengthening the “openness” of the national economy, and the development of the import and export of capital. Thus, entrepreneurship as a business entity and a special, creative type of economic behavior is an integral property of all factors in achieving economic success.

1. What is a company

Firm is an organization doing business under a specific name. The firm controls the use of land, labor and capital. She makes her own decisions regarding the design, production method and sale of products. A firm should be distinguished from a production unit such as a factory, farm or mine because it is a unit of management. One firm may own or control several production units.
There are companies different sizes- one private entrepreneur or corporation with many thousands of employees.

Company targets

Getting maximum profit is the ultimate goal of any business activity. This goal is achieved through the definition and implementation of a set of targets, both tactical and strategic. They are:

Increase in sales;
- achieving higher growth rates;
- increasing market share;

- increase in profit in relation to invested capital;

- increase in earnings per share of the company (if it is a joint-stock company);

- increase in the market value of shares (if it is an open joint-stock company);

- change in capital structure.

The nature of these target settings of the enterprise is determined by the state of the economy as a whole, the development trends of the specific industry to which the company’s activities belong, as well as the stage of the life cycle of the enterprise itself.
There is a theory of enterprise life cycles, according to which there are three stages of this cycle:

*First stage:*	It is characterized by active expansion and increasing growth rates. Accumulation is aimed at creating production capacity and capturing markets.
*Second stage:*	Increase in stock prices and profits, increase in income of capital owners. The main place is occupied by the struggle to maintain its market share; the growth of production capacity, compared to cost reduction, fades into the background.
*Third stage:*	There is a decrease in sales volumes, and with it a decrease in profits, which stimulates the outflow of capital from the industry. At this stage, the only goal of the enterprise is survival (maintaining viability), that is, the continuation of its operations for a certain period of time, often not so much to achieve a certain level of profit, but to minimize losses.

Company value system

Creating value is a fundamental function of an enterprise.
The process of creating value is the satisfaction of group or individual needs, as a result of which the company achieves public recognition of its activities. A prosperous enterprise is one that generates sustainable profits from its activities. The owners (or shareholders) of the enterprise are interested in a constant and ever-increasing flow of income and in such a use of their own and borrowed funds that increases the value of their property (dividends, shares). Personnel and suppliers are interested in the stability of the enterprise, long-term relationships with it, as well as a favorable working atmosphere. For consumers highest value represent goods and services that satisfy them in terms of quality and price.
Public recognition, in turn, gives the company the opportunity to expand production, increase sales and services, and ultimately increase its profits.
The main working tool in the implementation of the target functions of the enterprise is the market strategy, within the framework of which the competitive advantages of the enterprise are realized. In international business theory and practice, three main types of enterprise market strategy are distinguished.
The company's management must seriously analyze its existing competitive advantages and choose one of the market behavior strategies.
After the market strategy has been carried out, the next tool for implementing the target function of the enterprise, ensuring sustainable profit generation, is planning aimed at achieving the goals of the enterprise.

2. Private entrepreneur

This type of firm is also called a one-man business, or sole proprietorship. The owner has or acquires the material resources and capital equipment necessary for production activities, and also personally controls the activities of the enterprise.
If an entrepreneur comes to the conclusion that a different production structure or organization must correspond to the current situation, he destroys the old one and creates a new one, adequate to these conditions. This is where “creative destruction” manifests itself. The entrepreneur is focused not on static efficiency associated with maintaining the functionality of the existing system, but on dynamic efficiency, which involves timely change and development of the managed system. Modern economic theory defines entrepreneurship as proactive, independent economic activity of people aimed at making a profit through the organization and use of resources for the production and sale of goods.

Advantages of private entrepreneurship:

A sole proprietorship is easy to establish, since the legal procedure for registration is very simple and registration of a company of this kind usually does not require large expenses.
- the owner is his own boss and has considerable freedom of action. To make decisions about what and how to produce. There is no need to wait for decisions of any meetings, partners or directors.
- the owner can provide personal services to the client.
- incentives for effective work are the most energetic. The owner receives everything in case of success and loses everything in case of failure.

However, there are also disadvantages of this organizational form, and they are very significant:

With rare exceptions, the financial resources of a sole proprietor are insufficient for the firm to grow into a large enterprise. Since sole proprietorships have a relatively high bankruptcy rate, commercial banks are not very willing to provide them with large loans.
- full control over the activities of the enterprise is exercised, the owner must carry out all major decisions, for example, regarding the purchase, sale, attraction and maintenance of personnel; do not lose sight of technical aspects that may arise in production, advertising and distribution of products.
- the most important disadvantage is that the sole owner is the subject unlimited liability. This means that self-employed entrepreneurs risk not only the company's assets, but also their personal assets. If the company goes bankrupt, he is personally and solely liable for the debts of the company. In this case, the owner's personal property may be sold to pay debts.

3. Partnership (partnership)

Partnership - This is a form of business organization that is a natural development of sole proprietorship.
The Partnership Law defined a partnership as a voluntary association of 2 to 20 people who come together to do joint business for the purpose of making a profit. However, some areas of activity (lawyers, accountants, brokers) now allow more than 20 members to form partnerships. Partnerships can be created in the form of a general partnership and limited partnership.
Partnerships vary in the degree of participation in the activities of the enterprise. In some cases, all partners play an active role in the functioning of the enterprise, in other cases, one or more participants may play a passive role. This means that they invest their financial resources in the company, but do not actively participate in its management.
Like a sole proprietorship, a partnership is easy to form. In almost all cases, a written agreement is concluded, and the bureaucratic procedures are not burdensome.
Since a partnership brings together many people, the initial capital can be greater than in a sole proprietorship.
Firm management can be specialized. Each partner can take responsibility for a specific area of work. For example, for management, production, etc.
But when several people participate in management. This division of power can lead to incompatible interests, inconsistent policies, or inaction when decisive action is required. It's even worse when partners disagree on major issues. For all of these reasons, managing a partnership can be cumbersome and difficult.
The company's finances are still limited, although they significantly exceed the capabilities of private ownership. The financial resources of three or four partners may not be sufficient, or they may be such that they still severely limit the potential growth of a profitable enterprise.
The duration of the partnership is unpredictable. Withdrawal from a partnership or death of a partner, as a rule, entails the disintegration and complete reorganization of the company, potentially disrupting its activities.
Partnerships (partnerships) suffer from unlimited liability for the activities of the enterprise. A general partnership means that each partner is fully responsible for the debts of the business.
You can create a limited liability partnership. In this case, the partner is liable for the debts of the enterprise in the amount of the funds that he invested in it. However, partners in this type of partnership cannot take part in the conduct of the business - at least one of them must still assume full responsibility.

4. Corporation

Corporation is a legal form of business that is distinct and separate from the specific individuals who own it. These government-recognized “legal entities” can acquire resources, own assets, produce and sell products, borrow, make loans, sue and be sued. And also perform all the functions that are performed by any other type of enterprise.

Advantages of this form of business organization:

The most effective form of business organization in matters of attracting cash capital. Corporations have unique way financing - through the sale of stocks and bonds - which allows you to attract the savings of numerous households. Through the securities market, corporations can pool the financial resources of a huge number of individuals. Financing through the sale of securities also has certain advantages. From the buyers' point of view. Corporations have easier access to bank credit compared to other forms of business organization. The reason is not only the greater reliability of the corporation, but also its ability to provide banks with profitable accounts.
- Another significant advantage of corporations is limited liability. Owners of corporations (that is, stockholders) risk only the amount they paid to purchase the shares. Their personal assets are not at risk even if the corporation goes bankrupt. Creditors can sue a corporation as a legal entity, but not the owners of the corporation as individuals. The right of limited liability significantly simplifies the task of a corporation in attracting monetary capital.
- Because a corporation is a legal entity, it exists independently of its owners and, for that matter, of its own officers. Partnerships can die suddenly and unpredictably, but corporations, at least according to the laws, are eternal. Transferring ownership of a corporation through the sale of shares does not undermine its integrity. In short, corporations have a certain permanence that other forms of business lack, which opens up the possibility of long-term planning and growth.

The advantages of a corporation are enormous and usually outweigh their disadvantages. And yet they exist:

Registering a corporation's charter involves some bureaucratic procedures and legal fees.
- The next possible disadvantage of a corporation concerns issues related to the taxation of corporate profits. It's about the problem double taxation: That portion of a corporation's income that is paid out as dividends to stockholders is taxed twice—once as part of the corporation's profits and again as part of the stockholder's personal income.
- in case of sole proprietorship and partnership, the owners of real estate and financial assets themselves directly manage and control these assets. But in large corporations, whose shares are widely distributed among hundreds of thousands of owners, there is a significant divergence between the functions of ownership and control.
The reasons for this lie in the inactivity of the typical shareholder. Most shareholders do not exercise voting rights, or if they do exercise this right, they do so only by signing up to grant powers to current officers of the corporation.

All limited companies must be registered with Companies House. Before the start of actual activities, the company must submit a number of documents to Companies House for approval:

Company Memorandum;

- charter of a joint stock company.

Company Memorandum:	It must record the name of the company, the address of its registered office, the objectives of the company, the amount of capital that the company intends to raise by selling shares. The name of the company must include the words “limited liability” or, if it is a public company, “public company”.
Charter of a joint stock company:	Must describe how the company will be organized and managed. It should include information about the rights of shareholders, the rights and responsibilities of directors, and the procedure for convening meetings of shareholders.

The law requires all registered companies to publish annual accounts and provide copies of these accounts to Companies House.

4.1. Small business

A small enterprise can be created by a private individual, an enterprise, an organization, both state and public. Firstly, it can be simple or more complex, have branches, sites, representative offices. Secondly, the variety of purposes for which an enterprise can be created: artistic and auxiliary crafts, provision of all kinds of services to the population, launching almost any activity not prohibited by law. Thirdly, the relatively simple procedure of establishment and registration is attractive.
In industrialized countries, small businesses contribute a significant share of the total gross product.
The viability of small enterprises is determined by the freedom and simplicity of their creation, the absence of administrative coercion, a preferential tax system, and a market pricing mechanism.
Small enterprises include newly created or existing enterprises employing up to 200 people in industry or construction, up to 100 people in science and scientific services, up to 50 people in other sectors of the production sector, up to 25 people in non-production sectors, up to 15 people in retail trade.
Small enterprises can be created as a result of separation from an existing enterprise, association, or organization. In these cases, the organization (enterprise) from which the small enterprise was spun off acts as its founder.
For state registration of a small enterprise, local authorities should provide the latter with the following documents:

- order of the founders;

- memorandum of association;
- charter;

- receipt of payment of the state fee for registration.

The constituent agreement defines the relationship between the enterprise and its founder, the business owner, financial ties, authorized capital, and deductions from profits in favor of the founder.
The charter of a small enterprise establishes the goals of its activities, the procedure for forming the property of the enterprise, the procedure for management, the possibility of redemption, the distribution of profits, the conditions for reorganization and termination of activities and other important issues.
The enterprise independently carries out its activities, disposes of its products, the profit received, which remains at its disposal after paying taxes and other obligatory payments.
Small enterprises report on the results of their economic activities to the founders in the manner prescribed by the constituent agreement.
The enterprise is managed in accordance with the Charter. The manager (director) is appointed by the owner upon establishment of the enterprise. The management structure and staffing are determined by the workforce independently. Contracts can be concluded with managers, specialists and other employees as a special form of employment contract.
Procedural issues of liquidation of an enterprise are resolved by the owner of the property through the liquidation commission appointed by him. Justified claims of creditors against a small enterprise being liquidated are satisfied from its property.
When an enterprise is reorganized, its rights and obligations are transferred to its legal successors.

4.2. Joint-Stock Company

Joint-Stock Company - a voluntary organization of legal entities and citizens (including foreign ones) for joint activities by combining their contributions and issuing shares for the entire value of the authorized capital.
Joint stock companies are created of two types - closed and open. A joint stock company, the participants of which can alienate shares belonging to them without the consent of other shareholders, is recognized as open. Such a joint stock company has the right to subscribe for the shares it issues and to sell them freely under the conditions established by law. An open joint stock company is obliged to annually publish for public information an annual report, balance sheet, and profit and loss statement.
A joint stock company, the shares of which are distributed only among its founders or other predetermined circle of persons, is recognized closed.
Joint stock companies provide three important purposes:

Issue of shares by an enterprise for the purpose of mobilizing Money does not change its status, that is, the organizational and legal procedures are not transformed: the meeting of future participants, the determination of the authorized capital, the development of the charter and its state registration.
Contributions (shares) of participants in a joint-stock company (partnership) can be transferred from one owner to another only with the consent of the other owners (shareholders) in the manner prescribed by the charter.
Society contributions open type can change from one owner to another without the consent of shareholders. The shares of this company can be freely traded.
The supreme management body of a joint stock company is general meeting shareholders, it makes it possible to exercise the right to manage. The number of votes of participants at the meeting is determined in proportion to the size of their shares in the authorized capital.
Depending on who owns the shares, joint stock companies can be state-owned, cooperative, public, or mixed.
A joint stock company may be created for the purposes of economic and other activities not prohibited by law. A joint stock company, being a legal entity, has the right to enter into any transactions provided for by law, independently resolve issues of organizing management, setting prices for manufactured products, remuneration, and distribution of net profit. The company may have representative offices, branches, and establish subsidiaries as independent commercial organizations.
etc.................

An entrepreneurial firm is created by subjects entrepreneurial activity. These are citizens of a particular republic, citizens of foreign states and associations of citizens - collectives of entrepreneurs.

Entrepreneurial firms differ from each other according to qualitative and quantitative criteria. The main qualitative criterion is the form of ownership on the basis of which a particular company operates. According to this criterion, they usually distinguish: private firms; collective enterprises (with limited and unlimited liability); government and municipal enterprises; mergers of enterprises; branches and representative offices of enterprises, etc. In addition, there are differences in the nature and content of activities, in the volume and range of products, in the method of joining various inter-company unions, in methods of conducting competition and etc.

The main quantitative criterion for differentiating entrepreneurial firms is the number of employees and annual capital turnover.

According to the criterion of the number of employees in the United States, enterprises are distinguished:

the smallest (no more than 10 people);

smallest (no more than 20 people);

small (no more than 99 people);

medium (no more than 500 people);

large (over 500 people).

According to the criterion of annual capital turnover in Germany, enterprises are distinguished:

small (no more than 25 thousand marks);

medium and large (over 25 thousand brands).

Typically, quantitative criteria are determined by qualitative ones and, above all, by the criterion of the form of ownership. For example, small and tiny enterprises are private firms or collective enterprises with unlimited liability (partnerships, cooperatives).

Medium and large companies are most often joint-stock companies and limited liability companies. For example, in the United States, about 80% of small firms are either sole-owned or partner-owned. The category of small enterprises includes about 4 million joint-stock companies (corporations).

Our economic practice so far distinguishes only small enterprises - with average number employees not exceeding 200 people; in industry and construction - up to 200 people; in science and scientific services - up to 100 people; in other industries of the production sector - up to 50 people; in industries non-production sphere- up to 15 people At the same time, SE is not a special organizational and legal form of an enterprise. SEs are considered enterprises various forms property: private, state, collective, mixed. According to the legislation of the Russian Federation, small businesses, in addition to general benefits, have the following benefits:

when determining taxable profit, profit directed towards construction, reconstruction and renovation of fixed assets is excluded production assets, development new technology and technologies;

in the first two years of operation, enterprises for the production and processing of agricultural products, production of consumer goods, construction, repair and construction and production enterprises do not pay income tax building materials provided that the revenue from these types of activities exceeds 70% of the total revenue from the sale of products (works, services), and the start of work is considered to be the day of registration of the enterprise.

Enterprises with different organizational and legal forms are distinguished. Let's look at the main ones.

Types of business activities

There are several types of business activities: production, commercial (trading), financial, insurance, intermediation.

Manufacturing Entrepreneurship- the most difficult type of activity.

Why is this type of entrepreneurship considered difficult? Yes, because to produce any product or service you need basic And working capital.

Main means of production: buildings, structures, equipment, machines, vehicles etc. They are used for a long time. If an entrepreneur does not have fixed assets, then they must be purchased or rented for a time. For this he needs money. How much depends on the type and quantity of fixed assets needed for production and their prices.

Working capital: raw materials, materials, semi-finished products (that is, finished components that will be used in the manufacture of goods, for example screws, nuts, buttons, and so on). The amount of money spent on materials is determined by the quantity needed to produce a product and the prices at which they are purchased.

Therefore, an entrepreneur must organize his production so that the income received from the sale of goods covers the costs of maintaining fixed assets, the cost of purchasing materials and makes a profit.

Commercial (trade) entrepreneurship- This is an activity related to the purchase and sale of goods. Commerce - trade, merchant - a person engaged in trade. A commercial entrepreneur purchases goods from the owner of the goods, most often from the manufacturer. Products for merchants are the main factor of business. He receives income from the sale of goods purchased or taken from the manufacturer for sale at interest.

Financial Entrepreneurship - special kind activities, the object of purchase and sale is money, foreign currency, securities (shares, bonds, certificates). The essence of financial entrepreneurial activity is this. that the entrepreneur acquires the main factor (money, currency, securities) for a certain amount from the owner of the funds. Chatham sells the acquired funds to buyers for a fee exceeding the initial one, resulting in income. In credit entrepreneurship, the entrepreneur attracts cash deposits by paying deposit holders a reward in the form of deposit interest along with the subsequent return of the deposit.

Mediation- a specific type of entrepreneurial activity, closely related to other types, it is integral part production, financial and commercial entrepreneurship. Mediation is characterized by the fact that the intermediary himself does not produce or trade in goods, currency, etc. He stands between the manufacturer or seller on one side and the buyer on the other, connecting them into one chain of business transactions. The object of purchase and sale is the information that the intermediary receives from the manufacturer (seller) and transfers to the buyer. For the so-called service, he receives remuneration according to an agreement or established standards. This type of activity is often classified as services.

Insurance business.

IN Soviet economy There was only government insurance. With the transition to market relations, an insurance market emerged, in which insurance entrepreneurship finds its place, including voluntary forms of property insurance, personal health and life insurance, risk, and liability. Here the entrepreneur acts as a seller of insurance services, offering personally or through intermediaries - insurance agents - to purchase services to a potential buyer. The object of business activity is an insurance service that is sold for a certain fee. The insurer issues the policyholder a document insurance certificate in the form of an insurance contract, that is, insurance. The document certifies the right of the buyer of the insurance service or his heirs in the event of loss of health, property, or life by the policyholder to receive from the insurer monetary compensation losses. Providing an insurance document guaranteeing compensation for losses is an insurance service that an entrepreneur provides to the buyer.

It should be noted that all types of entrepreneurial activities are interconnected, so that while engaging in one type, one inevitably has to deal with other types. For example, while engaged in the production of goods, an entrepreneur can also engage in commercial entrepreneurship, selling his products. Production is also associated with financial transactions when taking out a loan and making payments to banks. Here, production entrepreneurship is intertwined with financial entrepreneurship.

Therefore, no matter what type of business activity an entrepreneur is engaged in, it must contain elements of creativity, innovation, individuality and such methods of action that are designed to give the best result.

But entrepreneurship can also have negative consequences. If the legislative score is imperfect, it contributes to the formation negative qualities human: greed, selfishness, aggressiveness, as well as an increase in the crime situation. Particularly dangerous is business conducted by various scammers, thieves, and people with low morality. Entrepreneurship is like a rapid stream. It can turn turbines, provide light and heat, or it can tear apart banks, demolish dams, bringing suffering and losses to millions of people.

Practical work

1. Give examples of each type of entrepreneurial activity by filling out a table in your notebook according to the sample (Table 4):

Table 4

production	financial	commercial	mediation	insurance
1.
2.
3.

2. Two schoolchildren friends decided to make money. They bought 150 newspapers at a kiosk for 80 kopecks per newspaper and began selling them in parking lots for 1 ruble 20 kopecks per piece. What type of business activity did the schoolchildren decide to engage in and what income would they receive if they sold all the newspapers?

Basic Concepts

Entrepreneurship, entrepreneur, entrepreneurial activity, enterprise, business, competition, property

You need to fill in the missing words. The credo of entrepreneurial activity is __________________________, since an entrepreneur always acts on his ______ and ______ and he bears all the consequences of ____________________ activities - both profit and _______________. At the same time, an entrepreneur is not necessarily ___________________; first of all, he is _____________________. He can use both his own funds and funds taken from ___________ or _________________. WORDS FOR REFERENCE (on cards): rented, commercial success, fear, losses, risk, owner, debt, production organizer, results.

Manufacturing entrepreneurship is the most difficult type of activity. To produce any product or service, fixed and working capital is required. Fixed assets: buildings, structures, equipment, machines, machines, vehicles, etc. They are used for a long time. Working capital: raw materials, materials, semi-finished products (for example, screws, nuts, buttons, etc.). An entrepreneur must organize his production so that the income received from the sale of goods covers the costs of maintaining fixed assets, the cost of purchasing materials and makes a profit.

Commercial (trade) entrepreneurship is an activity related to the purchase and sale of goods. Commerce – trade, merchant – a person engaged in trade. Products for merchants are the main factor of business. He receives income from the sale of goods purchased or taken from the manufacturer for sale at interest.

Financial entrepreneurship The object of purchase and sale is money, foreign currency, securities (stocks, bonds). The essence of financial entrepreneurial activity is that the entrepreneur acquires the main factor (money, currency, securities) for a certain amount from the owner of the funds. It then sells the acquired funds to buyers for more than the original price, resulting in income.

Mediation. Closely related to other species. The intermediary does not produce or trade goods, currency, etc. Object purchase and sale is the information that the intermediary receives from the manufacturer and transmits to the buyer. For this service he receives a reward.

Insurance business. In the Soviet economy, there was only state insurance. With the transition to market relations, the insurance market emerged. Includes voluntary forms of property insurance, personal health and life insurance, risk, liability and mandatory. The object of business activity is an insurance service that is sold for a certain fee. Insurance services are offered personally by the entrepreneur or through insurance agents. The insurer issues an insurance certificate to the policyholder.

Main features of a legal entity 1. Organizational unity. This is a team with its structure and management procedures, which are reflected in the documents of the enterprise. 2. Separate property. This is the property of the enterprise - fixed and working capital, which the enterprise can independently acquire, account for, use, sell, write off, and pay taxes. 3. Property liability. The company is responsible for its obligations. 4. Speaking in civil cases on one’s own behalf. An enterprise has the right to act on its own behalf in court as a plaintiff or defendant.

Organizational and legal forms of entrepreneurial activity Based on the type of ownership, they are divided into individual and collective. Individual forms include: individual- work activity, sole proprietorship and family enterprise.

Individual labor activity is carried out without the use of hired labor. Sole proprietorship - using hired labor. Family enterprise - all family members are the owners of the enterprise, profits are distributed depending on participation in the activity or in previously agreed shares.

Disadvantages: - difficulty in attracting large capital; - uncertainty of the timing of activities; - unlimited liability for debts; - a sole owner cannot be an expert in all matters of production: supply, sales, management, finance, which leads to making erroneous decisions.

The collective form of entrepreneurship is carried out by a group of citizens on the basis of their own property and various forms of attracting the property of other individuals and legal entities. This includes: companies, partnerships, corporations, joint stock companies. Depending on the nature of economic relations, there are limited and unlimited liability companies.

Main forms of entrepreneurship: Not commercial organization– an enterprise for which making a profit is not the main goal, and the profit received is used for self-development and achieving specific results for the organization. These are charitable organizations religious associations, public organizations, educational institutions. A non-profit organization is an enterprise for which making a profit is not the main goal, and the profit received is used for self-development and achieving specific results for the organization. These are charitable organizations, religious associations, public organizations, educational institutions. A commercial organization is an enterprise. The main goal of which is to receive profit and distribute it among all other participants. A commercial organization is an enterprise. The main goal of which is to receive profit and distribute it among all other participants.

Limited Liability Company - This is established by one or more persons economical society, the authorized capital of which is divided into shares, the sizes of which are determined constituent documents; The participants of the company are not liable for its obligations and bear the risk of losses associated with the activities of the company with their contributions.

Advantages of societies and partnerships: - Easy to organize; - Economic (material, labor, financial) opportunities increase many times over; - There is an opportunity to attract qualified specialists to work. Disadvantages: - Limited financial resources; - ambiguous understanding of the goals of the activity; - Unlimited responsibility of partners not only for their own decisions, but also for the consequences of the actions of others; - The difficulty of determining the extent of each in the income or loss of the company, the division of property.

A corporation is a legal form of business created to protect any privileges of its members. For example, in the USA this is what joint-stock companies are called. A joint stock company is a company whose authorized capital is divided into a certain number of parts (shares) equal to the nominal value. There are two types of joint stock companies: open and closed. Open – shares of the company are sold by public subscription. Anyone can buy them and become a member of a joint stock company. Closed – shares are distributed by private subscription among a certain circle of people among members of one team; these shares are not subject to resale. The number of participants cannot exceed 50.

Holding companies- a type of joint-stock company, but with a more complex structure. The purpose of the holding is control functions in relation to those companies in which it has controlling stakes. Production cooperatives are a voluntary association of citizens for joint production activities. Property consists of shares. Liability is limited to the size of the individual share. Profit is distributed among participants in accordance with their labor participation. Unitary enterprise is a commercial organization. Which does not have the right of ownership of the property. There can only be state or municipal enterprises.

Advantages of a joint-stock company: - Participants of the company bear limited liability; - The procedure for buying and selling a participation interest (shares) is simple; in the event of the death of a shareholder, his share passes to his heirs; - This form is more effective for attracting additional capital for the development of production, that is, you can take out a loan, i.e. issue more shares, sell them and increase capital. Disadvantages of a joint-stock company: - Establishing a joint-stock company is a complex and time-consuming matter; - Is subject to double taxation (as an independent legal entity pays tax on profits distributed among shareholders as dividends, it is taxed again as personal income of citizens; - Difficulty in making a single decision.

What type of activity is described in this definition: “activities for the production of products, goods, performance of work and provision of services” A. Entrepreneurial activity; B. Production activities; B. Commercial activities; D. Private enterprise.

Economic terms and their definitions A. 1. Partnership 2. Share 3. Holding 4. Authorized capital 5. Policyholder 6. Commercial entrepreneurship B. A. Minimum size property of the company, formed from the shares of participants B. An organization providing services for compensation of damages C. Securities of a joint-stock company D. Activities related to the purchase and sale of goods. D. Organization with participants' contributions divided authorized capital created for profit. E. An organization that acquires shares of other companies.

Name the type of company that has the following advantages and disadvantages: Advantages: Advantages: Easy to create; Easy to create; Easy to control; Easy to control; The freedom of action; The freedom of action; Less government regulation. Less government regulation. Disadvantages: Disadvantages: It is difficult to find funds to expand the company; It is difficult to find funds to expand the company; Less stability of the company; Less stability of the company; The owner must carry out all the work of managing the company. The owner must carry out all the work of managing the company.

Name the type of company that has the following advantages and disadvantages: Advantages: Advantages: Easy to create; Easy to create; Management work can be divided; Management work can be divided; Easier to collect more large sums money for the development of the company; It is easier to raise larger sums of money for the development of the company; Government regulation is not particularly strict. Government regulation is not particularly strict. Disadvantages: Disadvantages: Possible conflicts between partners; Conflicts between partners are possible; The withdrawal of one of the partners from the business requires re-registration of the company's documents; The withdrawal of one of the partners from the business requires re-registration of the company's documents; It is extremely difficult to raise funds for large projects. It is extremely difficult to raise funds for large projects.

Name the type of company that has the following advantages and disadvantages: Advantages: Advantages: You can collect huge capital by selling securities; It is possible to raise enormous capital by selling securities; Maximum stability of the company when its co-owners change; Maximum stability of the company when its co-owners change; Possibility of hiring professional managers. Possibility of hiring professional managers. Disadvantages: Disadvantages: You can lose control of the firm if someone buys a large amount of the firm's securities; You can lose control of a firm if someone buys a large amount of the firm's securities; Owners of a company are subject to double taxation. Owners of a company are subject to double taxation.

Enterprise and entrepreneurship

The main economic structural unit in a market economy is the enterprise. It is the enterprise that is the producer of goods and services, the most important market entity that enters into various economic relations with other entities on the basis of entrepreneurial activity.

Entrepreneurial activity – initiative independent activity aimed at satisfying needs and making a profit . Entrepreneurial activities in the Russian Federation can be carried out by citizens (individuals), as well as enterprises (legal entities).

The status of an entrepreneur is acquired after state registration of a legal or individual. Without registration, business activities cannot be carried out. The rights, obligations, responsibilities and guarantees of entrepreneurs are regulated by national legislation. The laws of the Russian Federation, for example, guarantee:

– the right to engage in entrepreneurial activity, create enterprises, acquire extremely important equipment and property;

– equal right of access of all subjects to the market, to material, labor, information and natural resources;

– equal conditions for the activities of enterprises, regardless of the type of ownership and organizational and legal forms;

– protection of enterprise property from illegal seizure;

– free choice of business area within established limits;

– prevention of unfair competition among entrepreneurs and monopoly position in the market of individual participants.

Entrepreneurial activities can be carried out with or without the formation of a legal entity. Entrepreneurial activity without forming a legal entity is carried out by a citizen - an individual entrepreneur who has passed state registration.

The success of an entrepreneur depends on several opportunities.

1. Willingness to take risks.

2. Be prepared for any opportunity that arises in the market due to risk.

3. Create new opportunities: innovations, new technologies, improvement of the organization, hedging (future contracts, transactions with premiums - options).

Examples of entrepreneur success:

Risk sharing (insurance, hedging).

Venture capitalists - looking for an entrepreneur with good ideas.

The path alone is information asymmetry.

Arbitrage – selling at high prices on another market; purchase by low prices in one market (ʼʼshuttlesʼʼ).

The relationship between entrepreneurship and the innovation process.

1. An entrepreneur forces changes to occur (introduces innovations into the process of his activities) in order to: improve the product; introduce new technologies; develop new methods of organizing production; shift cost curves; develop new types of goods and services.

2. The process of introducing innovations is very effective:

1% of innovations have “exceptional” creative potential;

10% – high creative potential;

60% – “moderate” and “some” creative potential;

30% – “low degree” of creative potential – performers.

3. Intrapreneurship - entrepreneurial activity carried out within a large company under the “most favored nation treatment” - scientific developments, patents, inventions.

4. Government development activities innovation processes, based on the use created in 2006 ᴦ. a special innovation fund, replenished annually.

Market process as a process natural selection, which helps regulate losses and profits of an entrepreneur due to the main market mechanism - competition. Entrepreneurial innovation animates the market in a similar way to animal genetic processes, but leads to risky situations.

Τᴀᴋᴎᴍ ᴏϬᴩᴀᴈᴏᴍ, there are three driving forces market:

1. The desire to take risks to get a decent profit.

2. Arbitrage processes provide opportunities for processing information embedded in existing prices, guiding the economy toward a state of equilibrium.

3. Innovation processes that disrupt the existing equilibrium create risky conditions for market revitalization (Figure 1.1).

Figure 1.1 – Classification of business risks

Entity- an organization that has separate property in ownership, economic management or operational management, is liable for its obligations with this property, can acquire or exercise property and personal non-property rights in its own name, bear obligations, be a plaintiff and be liable in court. A legal entity is characterized by such basic features as:

– property isolation, i.e. the presence of an independent balance sheet for commercial organizations or an independent estimate for non-profit organizations. Property belongs to a legal entity by right of ownership or is under its economic or operational management;

– independent property liability, i.e. liability for one’s obligations with separate property;

– independent performance in civil transactions on one’s own behalf, the ability to enter into civil contracts(purchase and sale, supply, transportation, loan, lease, contract, etc.) or otherwise acquire rights and bear obligations;

– organizational unity, i.e. the presence of an appropriate stable structure enshrined in the constituent documents.

The main form of business organization is the enterprise.

Company– an independent economic entity with the right of a legal entity, created in the manner prescribed by law, to produce products, perform work and provide services in order to meet public needs and make a profit.

Production in a market economy means any type of activity that generates income, regardless of whether they occur in the sphere of material production or in the service sector.

An enterprise is a proprietary economic unit organized to achieve some economic goal, i.e. it is an economic unit that:

– makes decisions independently;

– actually uses factors of production for the manufacture and sale of products;

– strives to generate income and achieve other goals.

An enterprise is a commercial organization, i.e. an organization aimed at making a profit. In this way, the enterprise differs significantly from non-profit organizations, ᴛ.ᴇ. organizations that do not pursue profit-making goals. Typically these include charitable and other foundations, associations, public associations, religious organizations, etc.

Each enterprise in market conditions must comply with the following principles:

– efficiency (achieving specified results with minimum costs or, at a certain amount of costs, ensuring the greatest results);

– financial stability(the company can make the necessary payments at any given time);

– making a profit (production and sales in terms of quantity and quality must be organized in such a way as to ensure profit and profitability).

Enterprises are different in terms of conditions, goals and nature of operation. For a more in-depth study of entrepreneurial activity, enterprises are usually classified according to the type and nature of economic activity, forms of ownership, ownership of capital and control over it, legal status and other signs. The following types of enterprises can be distinguished:

By industry and type of economic activity:

production, scientific and production; trading; construction; and etc.

By type of ownership:

government; municipal; private; mixed.

By the nature of the legal regime of property:

individual; collective:

a) with common shared ownership;

b) with common joint property.

By production capacity (enterprise size):

– small; average; large.

By predominant production factor:

– labor-intensive; capital intensive; material-intensive.

By ownership of capital and control over it:

– national; foreign; mixed.

Considering the dependence on the limits of responsibility:

– with full responsibility; with limited liability.

According to the organizational and legal form of entrepreneurial activity:

General partnership; partnership of faith; limited liability company; additional liability company; Joint-Stock Company; production cooperative; unitary enterprise.

By type of product produced:

Enterprises for the production of goods;

Enterprises providing services.

Enterprise and entrepreneurship - concept and types. Classification and features of the category "Enterprise and Entrepreneurship" 2017, 2018.