The company for doing business must possess a number of characteristics.
Without certain essential characteristics of an organization can not be an enterprise engaged in business activities.
Enterprise - is independently an economicentity organized and existing under the laws in order to produce products and services to meet the needs of customers and maximize profits.
Commercial and non-profit enterprises
To carry out productive activitiesthe company needs to register with the appropriate state bodies. After registration, the company receives the status of a legal entity that allows the organization to carry out production activities and to bear the legal, tax and other duties.
All existing businesses are divided into commercial and non-commercial.
Commercial organization - a legal entity,whose main objective is to make profit from production. Making a profit is the main activity of business. These organizations produce goods or provide services to consumers. Legal persons that are commercial organizations may be created in the form of:
- Business partnerships or obschestv-
- Production kooperativov-
- State unitary enterprises-
- Municipal unitary enterprises.
Non-profit organizations - are legalpersons whose main purpose is not profit and the distribution of income between the parties. Such enterprises are to achieve social, cultural, charitable, political, scientific and educational purposes, which are aimed at achieving the public good. This non-governmental organizations, which are financed by the owner of the establishment, and various charities. Non-profit enterprises may engage in business activities only if those activities aimed at achieving the public good.
The status of a legal entity, the resulting organization after passing state registration, necessarily implies the existence of the enterprise features. The following features of the enterprise:
1) The organization should have in its ownershipseparate property, ie, presence of elements, space, equipment that will enable the enterprise to self-manufacture products or provide services.
2) The ability of the company as a legal entity responsible for their own property existing obligations. These obligations arise to creditors or in case of default budget.
3) acquiring the status of a legal person,organization acts in economic circulation on their own behalf. This means that company at the conclusion of civil law contracts, relationships with customers, suppliers, raw materials, etc. in its own right, rather than through intermediaries.
4) The company has the right to participate in judicial proceedings, both as plaintiff and defendant.
5) The organization must be an independent balance or the estimate, ie, an entity shall keep records of income and expenses.
6) The company must have its own name and acts on the basis of the charter or the foundation agreement.
These attributes are fundamental to the definition of the enterprise.
Thus, the company - is an independent economic entity, has a number of rights and duties, and having the number of mandatory features that define the organization.