All types and forms of business arethe relationship between all market participants regarding their joint activities aimed at extracting profit from the use of equity. By itself, a business is an initiative-based economic activity that is secured by its own or borrowed funds and, at the same time, is implemented at your own risk and risk, setting itself as the main goals for making profit and further developing the business.
Characteristics
Considering the forms of business as capitalist relations, we can distinguish several of their characteristic features:
- the presence of start-up capital, which is invested in a particular case;
- the presence of a focused nature of investing start-up capital in the form of income on invested funds;
- the formation of certain relationships with other market participants regarding the use of invested capital, including both initial and subsequent ones.
Various economic relations affectingSeveral individuals engaged in business are so complex and multifaceted that it is almost impossible to define any clear boundaries in this industry. For this reason, entrepreneurial activity, which includes various forms of business, is today regarded as a legal concept. It is always a legally defined type of human activity, carried out within the limits of one of the forms of economic management defined by law.
Structure and objects
В качестве основных объектов бизнеса выступают completely free in their market actions sole proprietors of capital, which are individuals, as well as owners and owners of entire enterprises, referred to as legal entities. Today, in countries where there is a developed market economy, there are hundreds of thousands of people who, independently or in groups, risk their own capital by regularly opening up more and more new enterprises. At the same time, it is worth noting that quite often you can see how illegally various forms of business are mixed with the concepts of “commerce” and “entrepreneurship”.
Any family business or other formsrepresent a certain type of activity in the field of social production, which brings income to the owner or any other personal benefits. However, not everyone understands that economic activity can be carried out in the field of both tangible and intangible production, as a result of which it will be more correct to subdivide this concept into:
- entrepreneurship, which is an economic activity in the field of material production;
- commerce, which is an activity in any non-material sphere.
As a result of business activity, various material benefits are considered, while commercial activity is the provision of various services.
Forms
Group, independent and family business can be carried out in three main forms:
- partnership;
- private or individual entrepreneurship;
- corporations.
Private enterprise
In most cases, business inRussia and many other countries of the world belong to this form, in which only a certain person who simultaneously performs the functional tasks of a manager is considered as the owner. At the moment it is the most common form, which is characteristic of enterprises in the field of services, farms, small shops, as well as professional medical, legal and many other activities.
Partnership
Partnership is such a thing, inwhich has more than one owner. The main advantages of such interaction is that such a business in Russia and many other countries is much easier to implement, since the unification of several people ensures the merging of capital and joint ideas. If we talk about the shortcomings, it is worth to highlight a few basic ones:
- ambiguous understanding of the main goals of the company by all its participants;
- limited financial resources available;
- the difficulty of determining the exact share of each participant in the loss or income of the enterprise, as well as in the possible division of property.
Corporation
The corporation is a certaina set of individuals who have decided to unite to conduct joint business activities as a single legal entity. Large and medium businesses include a huge number of such forms, and the right to own property here is divided depending on the availability of shares. It is for this reason that the owners of such organizations are called "shareholders", while they themselves are called joint-stock companies. It is worth noting the fact that the owners in this case bear limited liability for debts, which is determined depending on their own contribution.
Among the advantages of this form is to providethe presence of virtually unlimited opportunities in terms of attracting money capital through the sale of bonds and shares, as well as the separation of the rights of all shareholders to personal and property. However, there are several disadvantages:
- double taxation of that part of incomean organization that it is customary to pay as dividends to each shareholder: the first is calculated as part of the company's profits, while the second is a part of the personal income of the owner himself;
- pretty favorable opportunity to commita variety of economic crimes, which is often expressed in the possibility of issuing and further selling shares, which in fact have no real price.
Помимо всего прочего, минусом подобной формы Business is the separation of control and ownership. Large and medium business of this form provides for the dispersion of shares among a sufficiently large number of owners, as a result of which the functions of ownership and control are separated from each other. In this case, each owner is interested in receiving the maximum possible dividends, while managers try to minimize them for further use in circulation.
There are also a lot of other flaws in corporations,but, in one way or another, their advantages significantly prevail over all these minuses, and therefore this form of business does not cease to use the fairly widespread use to this day.
Main types of business
The activity of the majoritybusiness entrepreneurs have a fairly large number of similar features, but still there are much more differences, and this is due to the fact that in different types of business there are various situations associated with certain risks and competitive advantages. In the process of implementing all of the above, entrepreneurs are trying to create their own mechanisms for successful work of a particular business. In other words, in each case a unique business project and special methods for its implementation are used.
You can also find a fairly large numberdifferences in the used mechanisms of legal regulation of modern business. It should be noted that different business projects are also taken into account, and in order to study them better, a business is divided into several types depending on the form of ownership, size and specific industry.
Industrial
This type of business today is consideredleading and different main function in the form of organization of production of certain products. This includes various companies involved in the production of clothing, cosmetics, perfumes, pharmaceutical products, as well as many other organizations. Today, production is the most common, but at the same time, the most complex type. However, such a business in Moscow and other cities of Russia is a platform that forms the modern market economy of the country. Within the boundaries of such a case, the transformation of raw materials into products ready for subsequent sale is carried out.
Doing such a thing is impossible without a purchase.entrepreneur a certain number of production factors. For the manufacture of goods you need to use certain working capital in the form of a working room, the necessary materials, as well as various instruments and other equipment. Also, do not forget that such a business in Moscow, as in any other city, cannot be conducted without knowledge of the relevant technologies, and fixed assets acquired by an entrepreneur almost always differ in a rather long service life, as a result of which you should not hope that their value will already be transferred to finished products during one cycle. All this causes a rather long freezing of the owner’s funds.
In addition to raw materials, the entrepreneur, who decided to openA new business of this type must spend money on attracting labor, delivering all the necessary materials, and also renting or purchasing storage facilities in which they will be stored. Also, do not forget about the warehouses for finished products, carrying out all sorts of repair work, regular professional development of workers and many other things, most of which are initially impossible to calculate and identify.
The main disadvantage of such a business can be calledthat every business enterprise pays off for quite a long time and brings real profit much later compared to other types. That is why this type of activity is quite often supported by the state.
Commercial
At the core of commercial business are laidoperations for the sale of various products. In this case, entrepreneurs open a new business as merchants or traders, engaged in the sale of goods purchased in a particular production in bulk. Pharmacy chains, online stores, retail outlets in the city, gas stations - these and many other organizations constitute a commercial activity.
При этом нужно правильно понимать, что в процессе passing the path from the manufacturer to the consumer product does not change. Thus, consumers quite often do not think about how best to deliver the right product from the manufacturer, and the business store presents all the products with maximum comfort. It should be noted that the share of the merchant is not only that he can earn on the difference between the initial price of the manufacturer and retail, but also the danger of risks associated with price fluctuations or changes in demand.
This type of business is the most simple andclear when compared to production and many others, and its main advantage is the ability to create and promote as quickly as possible. With the availability of Internet access today, the issue of advertising and attracting consumers is solved almost instantly. The initially established “local” business can be developed without problems to a regional or state level, and general consumption goods can be sold all over the world. That is why such business ideas with investments at the minimum level are so widespread.
Also, we can not say that the commercialactivity has a fairly high profitability. Worldwide, about 10% of the profitability of a business depends on production, while the commercial side of the issue affects 30% or more. The risks of such a business are manifested only in a high dependence on market conditions. The efficiency of doing business involves the presence of certain knowledge of the intricacies of marketing, oratorical talent and other important qualities.
Financial representation
Financial business is rightly considereda special kind of business, as here the area of activity are loans and money turnover. Such a business is completely based on banking, insurance and venture capital, and in the competence of financiers you can often find operations with foreign currencies and securities. This area is fully occupied by brokers and dealers. Entrepreneurs-financiers earn from the implementation of various financial transactions, as well as receiving dividends and interest. Examples of this type of business are known to everyone: banks, brokerage houses, etc.
In today's world, it is considered to be such a business.most risky, and it is for this reason that there is such a strong government regulation that only a few manage to “survive”. In the overwhelming majority of cases, firms operating in a financial environment are large players with serious competitive advantages:
- flexibility;
- the ability to quickly accumulate resources;
- sufficiently high mobility of resources;
- interaction with international financial markets.
So today, almost everyonecan open his own business if he is confident enough in his abilities and has a certain starting capital. At the same time, the latter does not have to worry much at all lately, since with a full-fledged business plan, today you can easily get a loan from a bank to open a small online business or even a small business.
