An enterprise for carrying out entrepreneurial activities must have a number of characteristics.
Without the presence of certain mandatory characteristics, the organization can not become an enterprise that carries out economic activities.
An enterprise is an autonomous economic entityA subject created and operating in accordance with the law for the purpose of producing products and providing services to meet the needs of consumers and to maximize profit.
Commercial and non-profit enterprises
To carry out production activitiesThe enterprise must register with the appropriate state authorities. After registration, the company receives the status of a legal entity, which allows the organization to carry out production activities and independently bear legal, tax and other duties.
All existing enterprises are divided into commercial and non-commercial.
A commercial organization is a legal entity,The main purpose of which is to extract profit from production. Profit taking is the main activity of a commercial enterprise. Such organizations produce goods or provide services to consumers. Legal entities that are commercial organizations can be created in the form of:
- economic partnerships or companies
- production cooperatives-
- state unitary enterprises-
- municipal unitary enterprises.
Non-profit organizations are legalPersons whose main purpose is not to extract profit and distribute income among participants. Such enterprises are created to achieve social, cultural, charitable, political, scientific and educational goals, which are aimed at achieving public goods. These are public organizations, which are financed by the owner of the institution, as well as various charitable foundations. Non-profit enterprises can engage in entrepreneurial activity only if this activity is aimed at achieving public goods.
Features of the company
The status of a legal entity, obtained by the organization after passing the state registration, assumes the obligatory presence of the characteristics of the enterprise. There are the following characteristics of the enterprise:
1), the Organization must have in its ownershipIsolated property, i. Availability of elements, space, equipment that will allow the enterprise to independently produce products or provide services.
2) The ability of the enterprise, as a legal entity, to meet its own property on the basis of existing obligations. Such obligations arise before creditors or in case of non-fulfillment of the budget.
3); Acquiring the status of a legal entity,The organization acts in economic circulation on its own behalf. This means that the enterprise when concluding civil contracts, the relationship with the consumer, suppliers of raw materials, etc. Acts on his own behalf, and not through intermediaries.
4) The enterprise has the right to participate in litigations both as a plaintiff and as a defendant.
5) The organization must necessarily have an independent balance or estimate, i.e. The enterprise must keep a record of profits and costs.
6) The enterprise must have its own name and act on the basis of the charter or the memorandum of association.
These characteristics are fundamental to the definition of an enterprise.
Thus, an enterprise is a self-managing entity that has a number of rights and obligations and has an obligatory number of characteristics that determine this organization.