Lecture 2. TYPES OF ENTERPRISES

Plan of the lecture Classification by type and nature of activities Classification by size of enterprise Classification by forms of ownership

1. Classification by type and nature of activities First of all, companies are different industrial branches. They fall into the enterprise of production and non-production sphere.

For example, industries based on their activities are the production of goods (usually for industrial enterprises are those with more than 50% of output is generated by industrial production).

Trading companies are implementing in the basic operations on purchase and sale of goods.

2. Classification by size of enterprise Small-to 50 employees, medium - 50 to 500 (sometimes - up to 300), big - more than 500, including a particularly large - more than 1000 employees.

Size of enterprises is closely related to their industry sector Size of enterprises is closely related to their industry sector. For example, enterprises of ferrous metallurgy and engineering are usually large and very large enterprises.

In the light, food, petrochemical industry are mainly medium-sized enterprises, in the wood and clothing industry - and close to the average small business.

3. Classification by forms of ownership Ownership is the basis of the legal status of the company. By ownership distinguish private and public.

Private enterprises can exist as separate independent companies or as associations established on the basis of a system of participation, and on the basis of agreements between the association members.

State-owned enterprises appear along with private firms contracting in economic circulation. Under the state-owned enterprises are understood as purely state.