Chores that. Types and forms of economic activity, its organization
Section 2. Organization of economic activity
In this section of the textbook, the study of the system of economic relations continues. After considering the subsystem of socio-economic relations, we will now understand the subsystem of organizational and economic relations, without which economic activity cannot exist and develop. This will allow us to find out how production is organized, by whom it is controlled, and in what organizational, economic and legal forms it achieves its intended goals.
Theme 4. Enterprises and organizations in the economy
4.1. Economic and legal characteristics of the enterprise
The primary link in the system of social production is the enterprise (firm). Company - This is an independent business entity created for the production of products, performance of work and the provision of services in order to meet social needs and make a profit.
A manufacturing enterprise is characterized by industrial, technical, organizational, economic and social unity.
Production and technical unity is determined by a set of means of production that have technological unity and the interconnection of the individual stages of production processes, as a result of which the raw materials used at the enterprise are converted into finished products. They also allow you to provide services and perform certain work in order to profit.
Organizational unity determined by the presence of a single team and a single leadership, which is reflected in the general and organizational structure of the enterprise.
Economic unity is determined by the commonality of economic results of the work - the volume of products sold, the level of profitability, the mass of profits, the funds of the enterprise, etc., and, most importantly, profit-making is the main goal of the activity.
However, the enterprise, first of all, is not a production, not economic, but a social unit. An enterprise is a collective of people of various qualifications related to certain socio-economic relations and interests, and profit-making serves as the basis for satisfying the needs (both material and spiritual) of the entire team. Therefore, the most important tasks of the enterprise are: paying staff socially fair wages, which would ensure the reproduction of labor; creation of normal working and resting conditions, opportunities for professional growth, etc.
An enterprise is not only an economic entity, but also entity . A legal entity is an organization that has separate property in its ownership, economic management or operational management and is liable for its obligations with this property, can acquire and exercise property and personal non-property rights on its own behalf, bear obligations, be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or estimate.
A legal entity is subject to state registration and acts either on the basis of the charter, or a memorandum and articles of association, or only a memorandum of association.
The charter reflects: the organizational and legal forms of the enterprise (firm); name; mailing address; subject and purpose of activity; statutory fund; profit distribution procedure; control bodies; list and location of structural units that make up the company; reorganization and liquidation conditions.
Firm - a legally independent business unit. It can be either a large enterprise or organization, or a small company. A modern firm usually includes several enterprises. If the firm consists of one enterprise, both terms coincide. In this case, the enterprise and the company designate the same object of economic activity. The company in relation to its production units is an entrepreneurial management body. Usually it is a firm, and not an enterprise, that acts as an economic entity in the market, implements a pricing policy, competes, participates in the distribution of profits, sets the pace and determines the direction of scientific and technological progress
A variety of enterprises operate in the economy. They differ from each other in a number of signs: industry affiliation; size; degree of specialization and scale of production of the same type of product; methods of organizing production and the degree of its mechanization and automation; legal forms, etc.
Signs industry affiliationenterprises serve: the nature of the raw materials consumed in the manufacture of products; purpose and nature of the finished product; technical and technological community of production; working time during the year. So, enterprises and organizations in our country are distributed in statistics, primarily in three groups of production sectors (parts of the national economy):
extractive;
processing;
distributing electricity, gas and water.
The importance of these sectors can be judged by general economic indicators (number of organizations, volume of goods shipped and financial result) - table 8.
Table 8.
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1. Key performance indicators of extractive, manufacturing and distribution of electricity, gas and water in 2007 |
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Number of operating organizations: | |
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Mining | |
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Manufacturing industry | |
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Production and distribution of electricity, gas and water | |
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The volume of shipped goods of own production, performed works and services on their own, billion rubles: | |
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Mining | |
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Manufacturing | |
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Production and distribution of electricity, gas, water | |
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Balanced financial result (profit minus losses), billion rubles | |
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2. Agriculture has the following structure (according to 2008, as a percentage of the total) |
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Agricultural organizations | |
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Households | |
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Peasant (farmer) households | |
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3. In construction in 2008, there were: |
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Construction organizations | |
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Volume of work performed (in actual prices in 1995, billion rubles) | |
By appointment finished products all enterprises are divided into two large groups: producing means of production and producing consumer goods.
According to technological community distinguish between enterprises with continuous and discrete production processes, with a predominance of mechanical and chemical production processes.
By working hours during the year distinguish between year-round and seasonal enterprises.
According to enterprise size They are divided into large (with more than 500 employees), medium (with 101 to 500 employees) and small (up to 100 employees). The main criterion for classifying an enterprise as one of these groups is not only the number of employees, but also the amount of allowable cash flow.
By specialization and scale of production enterprises of the same type are divided into specialized, diversified and combined.
You can select the company for other reasons. For example, depending on different types of economic and legal relations and the nature of production activity, such enterprises, for example, are distinguished:
rentalwhich produces products, performs work and provides services using property on the basis of a lease agreement (for a specified period);
venture capital- a small enterprise in science-intensive sectors of the economy, carrying out research, engineering and implementation of innovations of a risky nature;
closed(in some countries), in which there is an agreement that only union members or those wishing to join a union will be employed in this enterprise;
open, in which both members of the union and persons who are not members of the union are recruited;
collective, which was created either upon the redemption of a state-owned enterprise, or upon the acquisition of property of an enterprise by a labor collective.
The classification of enterprises is important in the development of model documentation for homogeneous enterprises, the application of standard design and technological solutions, production structure and other purposes.
In accordance with the forms of ownership, enterprises may be state, municipal, private, and may also be owned by public organizations.
Enterprise as object of rightsis recognized property Complexbeing in general real estate. The structure of this complex includes all types of property intended for its activities, including: land; building; equipment; inventory; raw materials; products.
In addition, this complex includes claim rights, debts, as well as signs identifying an enterprise, its products, work and services (company name, trademarks, service marks), and other exclusive rights.
The company operates in industry, agriculture, construction, transport, communications and informatics, science and scientific services, trade, logistics, culture, education, services and other sectors of the national economy. An enterprise may carry out several types of economic activity simultaneously.
According to Art. 3 HKU hD is understood asthe activities of business entities in the field of social production aimed at the production and sale of products, the performance of work or the provision of value-added services having price certainty.
HDfollowing signs:
1) this activity is aimed at the production of products (goods), the performance of work and the provision of services in order to meet the needs of other entities ;
2) it is carried out, as a rule, on a professional basis ;
3) the results of this activity are in the form of goods, and hence the value expression;
4) in the process of organizing and carrying out this activity, both the private interests of the producer and the public interests of the state and society as a whole are combined.
According to Art. 3 HKU HD, carried out to achieve economic and social results and for profit is entrepreneurship and entities involved in this activity are entrepreneurs. HD, which is carried out without the goal of making a profit is non-commercial HD.
Chapters 4 and 5 of the CCU establish general provisions regarding entrepreneurship and non-profit economic activity.
According to Art. 42 HKU entrepreneurship- it is an independent, proactive, systematic at its own risk HD, carried out by business entities (entrepreneurs) to achieve economic and social results in order to make a profit.
According to Art. 52 HKU nonprofit management - This is an independent, systematic HD implemented by business entities, aimed at achieving economic, social and other results without the goal of making a profit. NHD is carried out by business entities of the state or communal sectors of the economy in areas (activities) in which, according to Art. 12 of this Code prohibited entrepreneurship.
NHD can also be carried out by other business entities to which the implementation of HD in the form of entrepreneurship is prohibited by law (commodity and stock exchanges).
According to Art. 52 of the Civil Code of Ukraine, it is prohibited to carry out NCDs to state authorities, local authorities, and their officials. The following are defined in the CCU: organizational forms for the implementation of NHD (Article 53); provisions regarding its regulation (Article 54).
An objective basis, means and methods of state regulation of economic activity
State regulation of CD is an objective necessity, which is acquiring ever new features and features aimed at establishing market relations, privatization, entrepreneurship, and the development of various forms of management. The state regulates HD for two reasons. Firstly, the state manages the property, which is state property, and, secondly, the state impact on property is determined by a number of requirements regarding the protection of public interests related to:
with the formation of the state budget;
with environmental protection and use of natural resources;
with ensuring the country's defense capability;
with the implementation of freedom of enterprise and competition, protection from monopolism;
With the observance of the rule of law, both in internal business documents and in the implementation of foreign economic activity and foreign investment;
With the provision of employment, etc.
In addition, the state is obliged:
Provide business entities (regardless of ownership) the same legal and economic conditions;
To promote the development of the market, to carry out its regulation, using economic laws and incentives, implementing antitrust measures;
Provide preferential conditions to enterprises that use advanced technologies, create new jobs, etc.
State regulation of CD is a set of measures regarding the adoption and proper implementation of economic legislation, as well as determining the system of government bodies that directly carry out the functions of regulation and management of this sector of the economy.
According to Art. 12 HKU to fixed assetsthe regulatory effects of the state on HD include:
state order, state task (Article 13 of the KhKU and the Law of Ukraine of December 22, 1995 “On the supply of products for state needs” of the Law of Ukraine of February 22, 2000 “On the purchase of goods and services for state funds”);
licensing, patenting and quotas (Article 14 of the Commercial Code and the Law of June 1, 2000, “On Licensing Certain Types of CDs”, “On Patenting Certain Types of PDs”, “On FEA”);
certification and standardization (Art. 15 HKU, Law of Ukraine “On standardization”, “On confirmation of conformity”);
application of standards and limits;
regulation of prices and tariffs (HCU Chapter 21, Law of Ukraine “On Prices and Pricing”);
the provision of investment, tax and other benefits (Article 17, Law of Ukraine “On Publishing House”, “On the regime of foreign investment”, etc.);
the provision of subsidies, compensations, targeted innovations and subsidies (Article 16 of the CCU).
Principles of state regulation of HD represent the main provisions that determine the most general and most significant features of the economic policy of the state. These include:
Coordination and coordination of actions of business entities of various forms of ownership;
Economic independence;
Equality of all forms of ownership;
Combining economic and social goals.
In the process of implementing the regulation of HD, the state uses certain methods of state regulation of HD,which are a set of methods and techniques used in the process of regulatory activities by government bodies to solve problems in the field of economics in order to achieve certain results.
Among these methods, it is worth highlighting:
Method of persuasion, resolution;
Direct indication method;
Administrative and economic methods.
In modern conditions persuasion and resolution method is one of the main methods. In KhKU the principle of voluntary creation of the Union of Artists is defined, their equality regardless of the form of ownership and taking into account personal and public interests.
However, in the context of the development of market relations, the application of the method of persuasion and resolution is isolated from direct indication method does not give positive results. Therefore, in order to ensure order in CD in the cases provided for by law, the direct instructions method is used, which establishes requirements regarding product quality, environmental protection, accounting and reporting, safety precautions, etc.
Administrative methods - this is a direct impact on the behavior, activities of the Union of Artists with the help of mandatory guidelines, and economic methods are a direct impact with the help of economic incentives (prices, subsidies, loans, etc.). Administrative methodsmost often used in cases where an order or ban is needed to implement a management decision.
The practical application of economic methods is carried out using the following levers: pricing, soft loans, financing, etc.
According to Art. 8 HKU the state, state bodies and compulsory medical insurance are not business entities. Decisions by these authorities in the field of CD are made within their economic competence, enshrined in the Constitution of Ukraine, in the Law of Ukraine "On Local State Administrations", "On Local Self-Government", etc.
Types of economic activity
There are several types of economic activity:
- A household is a household run by a group of people living together.
- A small enterprise is a business unit engaged in the manufacture of a relatively small number of goods. The owner of such an enterprise may be one or more people. As a rule, it uses the owner’s own labor or a relatively small number of workers are employed.
- Large enterprises are enterprises that produce goods in bulk. Typically, these enterprises are formed by combining property owners. An example of which enterprise is a joint stock company.
- National economy is a combination of economic activity throughout the country. To a certain extent, this activity is directed by the state, which, in turn, is trying to ensure sustainable economic growth of the country and thereby increase the welfare of the entire population.
- The world economy is an economic system in which there are interconnections between different countries and peoples.
Forms of economic activity
Definition 1
The form of economic activity is a system of norms that determines the internal relations of the partners of the enterprise, as well as the relationship of this enterprise with other contractors and government bodies.
There are several forms of economic activity:
- Individual form;
- Collective form;
- Corporate form.
Under individual form of business refers to an enterprise whose owner is either an individual or a family. The functions of the owner and entrepreneurs are combined in one entity. He receives and distributes the income received, and also carries the risk of carrying out his business activities and has unlimited property liability to his creditors and third parties. As a rule, such enterprises are not legal entities. The owner of this enterprise can attract additional wage labor, but in a rather limited number (no more than 20 people).
If speak about collective form of business, then there are three types: business partnerships, business companies, joint-stock companies.
Business partnerships may be in the form of: full partnership and partnership in faith. A full partnership is an organization that is based on collective ownership. As a rule, it is an association of several individuals or legal entities. All participants of this type of partnership bear full unlimited liability for all obligations of the partnership. The property of a full partnership is formed at the expense of contributions of its participants and income received in the course of the implementation of its activities. All property belongs to the participant in a full partnership on the basis of shared ownership.
A limited partnership is an association where one or more of its owners bear full responsibility for all the obligations of the partnership, other investors are liable only to the extent of their capital.
TO business companies include: limited liability company, additional liability company. Limited liability company - these are enterprises that are created by combining deposits of legal entities and individuals. At the same time, the number of participants in a limited liability company cannot exceed the established limit, otherwise this company will be transformed into a joint-stock company within a year.
Additional liability company represents an organization that shares capital is divided into shares whose size is determined in advance. This type of society is formed by one or more persons. For all obligations of the company, all of its founders bear subsidiary liability in an amount that is a multiple of the value of the contribution to the authorized capital.
Joint-stock company represents a form of economic activity, all of whose funds are formed by combining the founders' capital, as well as issuing and placing shares. The participants of the joint-stock company are liable for all obligations of the company in an amount equal to deposits.
In order to protect their commercial interests and increase the efficiency of the use of enterprise capital, various legal forms can be combined into so-called corporate forms of entrepreneurship. These include: concerns, consortium, intersectoral and regional unions.
Concern - This is an association of organizations that carry out joint activities voluntarily. As a rule, concerts have scientific and technical functions, functions of production and social development, functions of foreign economic activity, etc.
Consortium - the association of the organization to solve certain problems, created on time. In our country, a consortium is created for the implementation of government programs by organizations of any form of ownership.
Industry and regional unions represent an association of organizations on a contractual basis. These unions are created to carry out one or more production and business functions.
Organization of economic activity
The organization of economic activity goes through three stages:
- Stage 1 - opportunity assessment. Initially, an objective assessment should be made of all the resources needed for the production process. For these purposes, it is advisable to use scientific developments. The main advantage of this stage is that it helps to give a preliminary assessment of the production potential of the products precisely in those volumes and in the conditions that will be investigated, and on the basis of which the decision will be made to launch the production of a particular product. After the production potential of the organization has been studied, the production line is launched within the framework of the generated plan.
- Stage 2 - auxiliary production launch. The implementation of this stage takes place only if necessary. Ancillary production is a rather necessary measure, since it helps to master new segments of the sales market and increase the chance of the effectiveness of the financial development of the organization. The organization can be serviced both on its own and with the help of third-party organizations and resources. At this stage, services are used to optimize the production of products and assess the potential cost of funds. At the next stage, work is carried out aimed at studying the sales market and product sales opportunities.
- Stage 3 - sales of products. All stages affecting product sales are tracked. At the same time, sales of products are kept, forecasts are made and researched, allowing competent decisions to be made by the organization's management. There are situations when you should develop a methodology for after-sales service. For example, when establishing a warranty period for their products.
The structure of any enterprise includes an administrative and managerial apparatus, a production department, a financial and economic department, and an accounting and reporting department. In addition, the structure may include other units whose tasks are to ensure a continuous process of production and manufacturing of products that would be competitive and meet the market requirements in terms of quantity, quality and delivery time. In this case, the main requirement and criterion for the efficiency of the enterprise is to minimize production costs, i.e. cost reduction of manufactured goods and services.
Factors determining the production and economic activities of the enterprise
The effectiveness of the production and economic activities of the enterprise, first of all, depends on such factors as the availability of production capacities, the state of the production and technical base, its technical and organizational level, and how much the organization of production and labor meets the current requirements of the market and the market.Of great importance for the activities of the enterprise is such a factor as financial and economic planning. This is not only the uninterrupted supply of necessary resources, but also constant control over the current activities of the enterprise, operational adjustment of management decisions in order to achieve planned results.
Control is carried out by analyzing the production and economic activities of the enterprise by comparing the main results of this activity with the calculated and planned indicators. Such indicators characterizing the efficiency of the enterprise, for example, include:
- profit from the sale of goods and services rendered;
- total production costs;
- profitability;
- the level of remuneration of people working at the enterprise;
- the amount of cash on the settlement accounts of the enterprise;
- existing payables and receivables.
In the distant past (over 10 thousand years ago), people practically did not engage in production, but only took everything that was necessary from nature. Their activities included hunting, fishing, and gathering. Over time, humanity has greatly changed and improved its activities.
From this article you will learn what business is and what types of business are.
So, the economy is called the production by people of all that is necessary to meet the needs and improve living conditions. In other words, economic activity is a set of industries that are interconnected.
These industries include:
- agriculture;
- industry;
- services sector;
- transport;
- trade;
- science and education;
- healthcare
- construction.
It is engaged in providing the population with food and raw materials for some industries. The development of agricultural production depends mainly on natural conditions. The degree of development of agriculture, in turn, has a great influence on the economy and the political situation of the state, as well as on its food independence.
The most important areas of this industry are animal husbandry and crop production. Livestock is engaged in the maintenance and breeding of farm animals for food (eggs, cheese, milk), raw materials (wool) and organic fertilizers. It includes livestock, poultry, sheep, pigs, etc.
The task of plant growing is to grow various agricultural crops, which are then used as food, animal feed and raw materials. The branches of plant growing include vegetable growing, potato growing, gardening, grain farming, etc.
Enterprises that produce tools and are engaged in the extraction of materials, raw materials, fuel, as well as the processing of industrial or agricultural products. Industry is divided into mining and manufacturing. Mining specializes in the extraction of raw materials, oil, coal, ores, peat, and manufacturing - in the production of ferrous and non-ferrous metals, machinery, equipment, building materials. The industry includes the following industries:
- fuel industry;
- light industry;
- food industry;
- timber industry;
- non-ferrous metallurgy;
- ferrous metallurgy;
- mechanical engineering and other industries.
Services sector
This industry is intended to provide the population with material and intangible (spiritual) services. Material services include household services, communications, transport. To intangible - health care, trade, public services. There are also market and non-market services. By market is meant those services that are marketed at prices that are significant in terms of economics. Transport, paid education, and healthcare are examples of typical market services. Non-market services include science, defense, and free health and education services, that is, everything that does not have economic value.
A tool that meets the needs of the population in the transportation of goods and passengers. This industry is expanding the scale of production and consumption, as it literally links these two processes. However, transportation is highly dependent on external conditions, because transportation is often carried out over long distances. Nevertheless, the transport industry is considered quite profitable in market conditions, not to mention the monopolization of transport.
The activities of people that are associated with acts of sale and a set of operations designed to carry out the exchange process. There are two types of trade: wholesale and retail. In wholesale trade, the purchase of goods takes place in large quantities, as they are purchased for the purpose of further use. Retail, on the contrary, carries out acts of sale directly to end consumers.
Education includes preschool and general secondary education, as well as training. Education includes industries such as transport, science, psychological, radio engineering, mathematics, construction and other types of education. The purpose of science is to obtain scientific knowledge as the results of ongoing research. It is very difficult to overestimate science: its contribution to the development of the state economy, increasing the efficiency of material production and protecting the state’s information resources is very large.
An industry engaged in the organization and provision of public health. To maintain and maintain physical and mental health, as well as to provide assistance in case of poor health, special social institutions are created.
This industry ensures the commissioning of new ones, as well as the reconstruction and repair of facilities for both industrial and non-industrial purposes. The main role of this industry is to create conditions for the dynamic pace of development of the state economy. In addition, this industry is directly involved in the creation of fixed assets (along with the building materials industry, metallurgy and some other sectors of the economy), which are intended for all sectors of the national economy.
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