Organizing forms of business activity

Organizing forms of business activity. Presently inour country exist and are developped three main types of business companies individualholdings enterprises, based on personal property of owner , partnershipand corporations. For instance, in United Staffs in 1982 s from 16 millioncompanies suppressing majority were shown by individual possessions and theiraverage profits formed only 42400 dollars, partnership was in 4 times above,but cost sold by goods corporations and services at the average exceeded 2million

dollars.Individual holdings and partnership. Expect, I has decided to open a shop on theassembly and selling the computers. I will come to lease a premises under theshop, buy completing to was than fill regiments, and, possible hire anyone, whostood for the pay-desk, while I on occupations. I shall completely order aremainder of profit after my business it is expenses payment. -

AnIndividual possession - an enterprise, basing in property of one person,having full right on tinned as a result economic activity profit and completelyresponsible for any losses, which tolerates an enterprise. Possible, myshop will turn out to be unprofitable, either as a many enterprise, basing inindividual property. In this case I will come to pay for losses from the ownpocket. Then I shall have to declare itself a bankrupt and allow toseparate the whole my cash assets andmiscellaneous

personal property between that, who I must money. But individualholdings not always come to nothing. Most often they ensure heavy existance toits owners, who work many watch, quite often earning herewith less one,gets anaverage salary. But under a hour individual holdings ensure wholly decentprofits to its owners. If my shop onselling the computers prospers, possible, I want to enlarge. For this me,probably, I will come to scramble over in the premises little more,

create agreater spare of goods, intended for selling, possible, buy a lorry for thedeivery of goods, hire more employees, gain furniture for the office. I will benecessary free financial capital to pay for all new equipment andspares. Where to take this facility on? If personally beside me money notsufficiently, probably I will try to get necessary financial facilities besidethe friend or relative, which in this case will

become a partner or companion. - Partnership full company - an enterprise, basing in joint ownership two or morepersons, having its share in the profit. Each Of owners, or partners, carriesjoint responsibility for all losses, which tolerates an enterprise. Sometimes,deal leads only one of the partners, but other only gives money sometimes bothor all owners are active enterprise participants. Exists several very largepartnership with hundreds of companions,

amongst legal and accounting companiesin particular. However formof partnership has two essential defects. First, partnership either as individualholdings are enterprises with unlimited responsiblity. This means that ifenterprise bears a loss, each of partners personally responsible for all debtsregardless of that, was shown it really active deal participant.

For instance,if one of two partners has gone bankrupt, other has responsibility for alldebts of company. Partner on the business puts on the card all its ownproperty, rather then only property of company for this reason company,which need for the confidence of their own clients, such, as legal andaccounting offices, often are partnership . The Secondessential defect of this organizing form is bounce ofpartner s agreements. If is taken a new partner or one of the existing partnersdies or wants to come out of

deal, must be invited lawyers for sheduling a newpartner s agreement. This негибкость creates inconveniences in the process ofattraction of financial capital required for enterprise activity and financingsof its growing. Some enterprises, such, as legal companies, requiring littleequipment and not needing for greater volumes of goods on regiments forselling, can form necessary funds to the account of condition of individualowner or partners, possible, by means of bank loans or

other persons. But thanmore enterprise and than more equipment and spares he is required for theoperation, that harder becomes to ensure a necessary financing specified aboveby ways. To Mashroom an enterprise also must be able to form the greateramounts of financing on more or less regular base. This uncomfortably do byconstant attraction of new partners. Corporations. If myenterprise on the assembly and selling the computers is increased and prospectsof

growing look favourable considering defect of the form of partnership, I,probably, will go on the incorporiration of my enterprise, will organizine a corporation. - ACorporation - an organization, concerning with on legal bases by certaintypes of activity, such as usage of railways or issue of newspaper. The Ownersto corporations have responsibility only for their own embedding in the givencorporation, even though their for covering the losses insufficiently, which

ittolerates. Corporationunlike the individual holdings or partnership has legal existance differentfrom existance of people, which are the owners to corporations at any concretemoment of the time. Thereby, corporation does not stop its existance, when oneof its owners, named by the shareholder, or shareholder, dies orwhen appear new owners. Property tocorporations is divided between its shareholders. Initial shareholders areone,makes a contribution in the manner of the money or other resources such,

as a free work or idea of product itself, produced by the company at a momentof making a corporation. As an indemnifying their own expenseses they getrights on the participation in profits of the companies. This is realized bymeans of slips of paper, named by certificates share, installing nature ofprofit for their owners, on the reception which they have a right share canbe common and privileged, difference between which is concluded in thepayment fixed, in the event of privileged, and хаотичного, in the event

ofcommon, dividend . Holders share, or shareholders, each corporations thatis to say owners of certificates share elect a board of directors, which havecharge of hiring the high administrations to corporations and realizes achecking for its work. On the measureof growing a company can cash to the account of increasing an issue of sharecertificates and their sale. In exchange for right a holdings a corporationgets necessary her facility for the operation and growing. In turn shareholderscan, as a rule, resell their own share

for cash money any, who can their buy.Thereby, present-day owners to corporations not without fall are one,has gainedshare first issue. More probably that present-day owners gained its capitalbeside preceding owners through the go-between broker on the stock market.Restrictions exist In some small companies on the right of owner to sell shareto disturb outsiders to gain a checking on the company if group of shareholders own a most share corporations, speak that this

groupchecks a corporation . But outsiderscan gain a checking on large companies without such restrictions by buyingtheir share. Profit tocorporations can be discharged shareholders in the manner of dividends or canstay in the company in the manner of нераспределенных profits stayed profit . - Dividendspresent itself more or less regular usually quarter payments, directed by the corporation to itsshareholders. Stayed profit - part of the profit, which company does notpay its shareholders as

dividends. These profits stay at the disposal ofcompany. Payments ofdividends present itself direct profits on embedding the shareholders.Corporations not obliged to pay dividends, but majority of corporations theirpays. Large companies, as a rule, are tortured to support a firm flow ofpayments of dividends to its owners. Rate of paying dividends, either as a rateof return company and procentage rate of share price, greatly

changes from thecompany to the company. Part of theprofit, staying at the disposal of company in the manner of нераспределеннойprofit, is usually used for the financing of investments and, thereby, enlargesa cost share company. Eventually, нераспределенная profit ensures shareholdersa return in the manner of profits on the increase of capital.