The types and forms of business. Business activities

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2020-05-02 21:20:19

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All the types and forms of business represent the relationship between all market participants regarding their joint activities aimed at deriving profit from use of its own capital. By itself, the business initiative is economic activity that is provided by its own or borrowed funds and is implemented at your own risk, setting itself in the form of the main purposes of the profit and the further development of the case.

Characteristics

Examining the forms of business as capitalist relations, it is possible to allocate some of their characteristics:

  • The presence of start-up capital that is invested in a certain thing;
  • Availability of targeted investments seed capital in the form of receiving income on investment;
  • The formation of specific interactions with other market participants regarding the use of invested capital, including both initial and subsequent.

business

A Variety of economic relations, involving two or more individuals engaged in business are so complex and multifaceted that any clear boundaries in this industry is nearly impossible to determine. For this reason, entrepreneurial activities, including various forms of business, is regarded as a legal concept. It is always legally a human activity, carried out within one of certain legal forms of management.

Structure and facilities

As the main objects of the business are fully available in their market actions are the sole capital owners which are natural persons, as well as the owners and proprietors of the entire company, referred to as legal persons. Today in countries with developed market economy, there are hundreds of thousands of people who independently or in groups risk their own capital, regularly opening more and more new businesses. It should be noted that quite often can be seen as unlawful various forms of business are mixed with the concepts of “Commerce” and “enterprise”.

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the family business

Any family business or other forms present a definite activity in the field of social production, which brings to its owner an income or any other personal benefits. However, not everyone understands that economic activities can be carried out in the region, both tangible and intangible production, causing more correct to subdivide this concept:

  • Enterprise, representing a business in the field of material production;
  • Commerce, which represents the activity in any non-material production.

As a result of entrepreneurial activity examines a variety of material goods, while the commercial activity is the provision of various services.

Forms

Individual, Group, and family business can be carried out in three main forms:

  • A partnership;
  • Private or individual enterprise;
  • Corporation.

Private enterprise

In the majority of cases, the business in Russia and many other countries around the world is of this form, in which the owner deals only with a certain person, performing both functional tasks of a Manager. At the moment it is the most common form, which is typical for companies in services, farms, small shops, as well as professional medical, legal, and many other activities.

business in Russia

Partnership

The Partnership represents a case in which there is more than one owner. The main advantages of such interaction is that such business in Russia and many other countries is much easier to implement since the Union of several people provides the fusion of capital and sharing of ideas. If to speak about shortcomings, it is necessary to highlight some basic:

  • Ambiguous understanding of the main objectives of the company by all its members;
  • The limitations in the available financial resources;
  • The complexity of determining the exact share of each participant in the net loss or income of the company, as well as the possible division of the property.

Corporation

The Corporation also represents a set of individuals who have decided to unite for conducting joint business activities as a single legal entity. Large and medium businesses comprise a huge number of such forms, and the right to property here is divided, depending on stock availability. For this reason, the owners of such organizations are called “shares”, as they are called joint-stock companies. It is worth noting the fact that the owners in this case have limited liability for the debts, which is determined depending on their own contribution.

The advantages of this form is to provide the availability of virtually unlimited possibilities in terms of raising capital through the sale of bonds and shares, as well as the separation of the rights of all shareholders for personal and property. However, there are a number of drawbacks:

  • Availability of double taxation of that part of the income of the organization, which accepted to pay as dividends to each shareholder: the first is calculated as part of the company's profit, while the second represents part of the personal income of the owner;
  • Pretty favourable opportunities to commit various economic crimes that most often expressed in the features of the release and subsequent sale of the shares that actually have no real price.

medium business

In Addition, the disadvantage of such form of business is the separation of control and ownership. Large and medium businesses such forms involves the dispersion of shares among a sufficiently large number of owners, whereby the functions of ownership and control are detached from each other. Each owner in this case is interested in obtaining the maximum possible dividends, while managers try to minimize them for further use in circulation.

Also there are many other disadvantages of corporations, but one way or another, their advantages greatly outweigh all of these disadvantages and therefore this form of business does not cease to use a fairly wide spread today.

Principal business

The Activity of the majority of business entrepreneurs have a sufficiently large number of similar features, but here there is far more differences and this is due to the fact that different types of businesses, there are various situations associated with risks and competitive advantages. In the process of implementing the foregoing, the entrepreneurs trying to create their own mechanisms of successful operation of that particular business. In other words, each case is unique to the business project and the special methods for its implementation.

You can Also find quite a number of differences used in the mechanisms of legal regulation of modern business. It should be noted that here also takes into account different business projects, and to study them better, businesses are divided into several types depending on the form of ownership, size, and particular industry.

Production

This type of business today is a leading and you'll be the main function in the organization of production of certain products. This includes a variety of companies engaged in production of clothes, cosmetics, perfumes, pharmaceutical products, as well as many other organizations. Today, manufacturing constitutes the most common, but at the same time and the most complicated. However, such a business in Moscow and other cities of Russia, is a platform forming a modern market economy. In borders of this case is the transformation of raw materials into products ready for implementation.

Keeping such things is impossible without buying the owner a certain number of production factors. For the manufacture of the product need to use a certain working capital in the form of the working space, necessary materials, and various appliances and other equipment. Also do not forget that such a business in Moscow, as in any other city, cannot be undertaken without knowledge of relevant technologies, and fixed assets purchased by the entrepreneur almost always have relatively long life-span and you should not rely on the fact that their cost is transferred to finished goods during one cycle. All this causes a relatively long freezing the financial assets of the owner.

project

In Addition to the raw materials, the entrepreneur who decided to open a new business that has to spend the money on the labour, delivery of all necessary materials, and rental or purchase of warehouse space in which they are stored. Also do not forget about the warehouse for finished products, carrying out all kinds of repair work, regular training of employees and many other things, most of which are originally impossible to calculate and designate.

The Main disadvantage of this business is the fact that pays off each and every business enterprise long enough and the real profit comes much later compared to other species. That is why this kind of activity is quite often supported by the state.

Commercial

At the heart of commercial business operations are laid by the sale of various products. In this case entrepreneurs open a new business as merchants or traders, engaged in sale of goods purchased on a particular manufacture in bulk. Pharmacy network, online shopping, retail outlets in the city, dressings – these and many other organizations are commercial activities.

It shouldto understand correctly, that in the process of passing the way from producer to consumer goods does not change. Thus, consumers quite often do not think about how best to deliver the desired goods from the manufacturer, but the business store brings all products with maximum comfort. It should be noted that the share of the merchant falls not only to what he can earn on the difference between the original price of the manufacturer and retail sale, but also danger risks related to fluctuations in prices or demand.

business in Moscow

This type of business is the most clear and simple when compared with production, and many others, and its main advantage is the ability to the fastest possible setting. With the availability of Internet access today, the issue of advertising and attracting consumers is solved almost instantly. Initially created “local” business in the future no problem to develop to a regional or state level, and consumer products and all can be implemented worldwide. That's why such business ideas with minimum investment levels are so widespread.

Also not to say that commercial activity has a rather high profitability. Worldwide production depends on approximately 10% of the profitability of the business, while the commercial side of the question affects 30% or more. The risks of such business are shown only in highly dependent on market conditions. The efficiency of commercial activities, provides for certain knowledge of the intricacies of marketing, oratorical talent, and other important qualities.

Financial representation

A Financial business made rightly be considered a special type of entrepreneurship, as here as spheres of activity are the credit and turnover. Such a thing is entirely based on banking, insurance and venture capital and the competence of the financiers you can often find transactions with foreign currencies and securities. This area is fully occupied by brokers and dealers. Entrepreneurs, financiers earn through various financial transactions and also to dividends and interest. Examples of this kind of business known to everyone: the banks, brokerage houses, etc.

new business

In the modern world is considered to be a most risky business and it is for this reason that there is so much government regulation that “survive” works only units. In the majority of cases, the firms operating in the financial environment are major players with significant competitive advantages:

  • Flexibility;
  • The ability to quickly raise the necessary resources;
  • High enough mobility of resources;
  • Interaction with international financial markets.

Therefore, almost everyone can open own business, if he has enough confidence in their abilities and have some starting capital. While as for the latter recently and did not have to worry too much, as in the presence of a full-fledged business plan, today it is possible without any difficulty to obtain credit in any Bank in order to start a small online business or even small company.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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