Everyone in any area of their business often encounters a variety of legal entities. All individual legal entities, in turn, have their own characteristic differences. In connection with such a large number of commercial organizations in the market, many have a question about what an enterprise is.
Enterprise concept
So what is an enterprise? Under the enterprise refers to one or another entity that is engaged in the production of certain goods or the provision of services. As the task of the enterprise, we can single out the receipt of the maximum possible profit.
Enterprises are rightfully considered the main working tools that benefit the entire state. With the help of enterprises, a budget is provided, a large number of new jobs appear, taxes are paid, and a certain salary is provided to employees.
Enterprises can act independently in the following cases:
- When choosing which services to provide to their consumers, and when choosing manufactured or sold goods.
- When setting prices, within which the manufactured products will be sold, when choosing the volume of production, the volume of purchases and the choice of intermediaries.
- When choosing ways of distribution and use of manufactured and sold goods.
Business Classification
The activity of the enterprise allows it to be divided into several different types. There are several methods by which it is possible to correctly classify a given form of a commercial organization.
1. By the number of people who perform their functions at the facilities of the enterprise, this commercial form of service may be divided into:
- small, in which the number of employees does not exceed one hundred people;
- middle ones, in which up to five hundred people work;
- large.
2. Also, enterprises can be divided into various types, depending on existing forms of ownership:
- private;
- municipal;
- state;
- others.
3. Separately, it is worth highlighting enterprises that are divided among themselves according to the form of management:
- corporate;
- affiliate
- individual.
Structure
What is an enterprise if it does not have its own structure? That is why it is necessary to dwell on this issue in more detail.
The structure of the enterprise implies an external control device, which is carried out by the head of the enterprise and its subordinates. Depending on the type and shape of your management structure may be different and should be considered individually.
The structure of the enterprise is considered as general and industrial. In the production scheme, one can distinguish a variety of departments that are directly involved in the production. The general structure includes the management apparatus, as well as all units of this particular enterprise.
Company property
What is an enterprise without property? It simply would not exist, since any legal entity should have at least something on its balance sheet. The organization of the enterprise implies that all of its property should be divided into tangible and intangible assets, cash, which can either be in bank accounts or take an active part in the turnover.
In addition, the property of an enterprise can be divided into movable and immovable.
Company Form
At the beginning of doing business, you must choose which one legal form will be with the legal entity. Such a legal form is the form of an economic entity, in accordance with which the method of fixing and using property belonging to a commercial organization is determined.
Organization of the enterprise involves the choice of its legal form. The best options that you should pay attention to if you want to open your own legal entity are as follows:
- Individual entrepreneur. This is an individual who, as a result of registration, receives the right to conduct business.
- Limited liability company.
- Joint-stock company, which can be both closed and open.
Features of the division of the enterprise into forms
The division of OJSC and CJSC is carried out on the basis of how shares are distributed. In an open society, anyone can buy shares. In closed distribution occurs between members of the organization.
Forms of enterprises also depend on what kind of goal will be set before him. If its main goal is not to make a profit with its subsequent redistribution among the participants, this organization will be considered non-profit. By law, such an organization does not have to be registered as a legal entity, but without such a procedure, various restrictions may appear during an entrepreneurial activity.
Head of the enterprise
Of course, an enterprise without a manager who will control the work of all employees and provide activity cannot function. Organization of an enterprise assumes the existence of a certain category of workers who will be engaged in the management of not only the organization itself, but also all its branches and divisions.
If you consider the legislation, you can notice one feature. The position of a manager is characterized by a certain duality of her existing legal status in such a process as enterprise management. If we consider this situation on the one hand, it turns out that the head of the organization and the enterprise itself are often considered as a single person. After all, the orders of the head are acts of the enterprise itself.
And if you look at this situation from the opposite side, it turns out that this leader also acts as an employee who fulfills the duties assigned to him, subject to the requirements of the concluded labor contract. It is precisely because of such duality that a peculiar contradiction arises between the need to protect the rights of shareholders and founders of the company from illiterate actions by the head appointed by them.
Executive functions
The head of the organization always acts as a top manager. Any manager, regardless of the height of his post, must fulfill a certain list of functions assigned to him by collective agreements.
- The manager must determine the main goals and set goals in order to achieve them, thus managing the enterprise.
- The manager should deal with the distribution of responsibilities between all his subordinates, depending on their competence.
- The manager is engaged in motivating employees to achieve their goals. In this case, the motivation can be either tangible, which is most often expressed in the payment of bonuses and benefits, or intangible, for example, placing on a board of honor or delivery of letters.
- The manager must make every effort to create a pleasant psychological climate in the organization.A competent leader always immediately notices all emerging conflicts and resolves disagreements between team members.
- The manager should facilitate the cooperation of his employees and carefully encourage the initiative.
- Each manager must make management decisions and bear responsibility for them.
- The manager is faced with the need to create such working conditions so that the employee does not interfere with the performance of their labor functions.
- The manager must engage in the formation of a separate system of punishments that employees will have to incur for committed violations of existing discipline at the enterprise.
We briefly examined the basic concepts and activities of the enterprise in its general form.