1. Eurostat Item I.2 Exercises on statistical units ESTP Course How to compile statistics on global enterprises

2. Eurostat Exercice 1 The created business can be considered as an enterprise YES  NO  A translator decides to start his own business as a free-lancer. His business is registered in the trade register. He is self-employed and has no employee. His business generates a turnover of 30000€ per year.

3. Eurostat Exercice 1 The created business can be considered as an enterprise YES  NO  A translator decides to start his own business as a free-lancer. His business is registered in the trade register. He is self-employed and has no employee. His business generates a turnover of 30000€ per year.

4. Eurostat Exercice 2 The created business can be considered as an enterprise YES  NO  A student, in order to win money to fund his studies, decides to create a seasonal business of doughnuts sale on the beach. He performs his activity from 15 June to 15 September. His business generates a turnover of 5000€ per year.

5. Eurostat Exercice 2 The created business can be considered as an enterprise YES  NO  A student, in order to win money to fund his studies, decides to create a seasonal business of doughnuts sale on the beach. He performs his activity from 15 June to 15 September. His business generates a turnover of 5000€ per year. The created business can be considered as an enterprise YES  NO 

6. Eurostat Exercice 3 The created business can be considered as an enterprise YES  NO  Three sisters inherited of a house. They decide to create a company to manage the house. The created legal unit has no employee and does not generate any turnover. The legal unit is classified in the NACE code “6820” renting and operating of own leased real estate” which includes “development of building projects for own operation”. The legal unit has no obligation of providing accounts.

7. Eurostat Exercice 3 The created business can be considered as an enterprise YES  NO  Three sisters inherited of a house. They decide to create a company to manage the house. The created legal unit has no employee and does not generate any turnover. The legal unit is classified in the NACE code “6820” renting and operating of own leased real estate” which includes “development of building projects for own operation”. The legal unit has no obligation of providing accounts.

8. Eurostat Exercice 4 The created group can be considered as a single enterprise YES  NO  A French company is performing an activity of manufacture of electric motors and employed until 2013 48 employees. Its activity has been growing along the years and it envisages hiring 5 persons in 2014. As its employees will exceed 50 employees, the company will have to create a Joint consultative committee including representatives of the employees. In order to avoid the creation of such a committee, the owner of the company decides to create a second company under the same control than the first one and performing the same activity in the same building which will employ the new staff.

9. Eurostat Exercice 4 The created group can be considered as a single enterprise YES  NO  A French company is performing an activity of manufacture of electric motors and employed until 2013 48 employees. Its activity has been growing along the years and it envisages hiring 5 persons in 2014. As its employees will exceed 50 employees, the company will have to create a Joint consultative committee including representatives of the employees). In order to avoid the creation of such a committee, the owner of the company decides to create a second company under the same control as the first one and performing the same activity in the same building which will employ the new staff.

10. Eurostat Exercice 5 How many enterprises should we consider? 1 1+50=51 Other answer:…………………………… A company is performing an activity of construction of residential buildings and employs 250 persons. As it is facing economic difficulties, it decides to fire 50 of its employees and oblige them to become self- employed (as sole proprietor). The newly created (and registered) sole proprietors become sub-contractors of their former employer. They get 100% of their turnover from this subcontracting activity. On an economic point of view, nothing was changed between the previous and the current situation. On a legal point of view, 50 independent legal units were created.

11. Eurostat Exercice 5 How many enterprises should we consider? 1 1+50=51 Other answer:…………………………… A company is performing an activity of construction of residential building and employs 250 persons. As it is facing economic difficulties, it decides to fire 50 of its employees and oblige them to become self- employed (as sole proprietor). The newly created (and registered) sole proprietors become sub-contractors of their former employer. They get 100% of their turnover from this subcontracting activity. On an economic point of view, nothing was changed between the previous and the current situation. On a legal point of view, 50 independent legal units were created.

12. Eurostat Exercice 6 How many enterprises should we consider? 1 1+15=16 Other answer:…………………………… A business performing an activity of retail sale of chocolates (NACE 4724) is organised as a group of 15 legal units. Among them, 10 legal units correspond to stores. The remaining legal units perform intra- group activities of wholesale, transport and administration activities. In addition to these 10 stores, 15 independent companies sell the same products under a franchise contract. They have to respect some conditions to be able to sell the products: their supply comes exclusively from the group and they cannot sell other products, the layout and decoration of the stores is standardised and the prices are fixed by the group.

13. Eurostat Exercice 6 How many enterprises should we consider? 1 1+15=16 Other answer:…………………………… A business performing an activity of retail sale of chocolates (NACE 4724) is organised as a group of 15 legal units. Among them, 10 legal units correspond to stores. The remaining legal units perform intra- group activities of wholesale, transport and administration activities. In addition to these 10 stores, 15 independent companies sell the same products under a franchise contract. They have to respect some conditions to be able to sell the products: their supply comes exclusively from the group and they cannot sell other products, the layout and decoration of the stores is standardised and the prices are fixed by the group.

14. Eurostat Exercice 7 How many enterprises should we consider? 1 2 Other answer:…………………………… A domestic group is manufacturing footwear. It is organised into 2 legal units (according to the following picture): one legal unit has an activity of tanning of leather and is selling its production completely to a second legal unit which is manufacturing the footwear.

15. Eurostat Exercice 7 How many enterprises should we consider? 1 2 Other answer:…………………………… A domestic group is manufacturing footwear. It is organised into 2 legal units (according to the following picture): one legal unit has an activity of tanning of leather and is selling its production to a second legal unit which is manufacturing the footwear.

16. Eurostat Exercice 8 How many enterprises should we consider? 1 2 Other answer:…………………………… A business manufactures footwear. Its activities are organised into 2 legal units: one which is performing the activity and the other which is managing the human resources for the other unit.

17. Eurostat Exercice 8 How many enterprises should we consider? 1 2 Other answer:…………………………… A business manufactures footwear. Its activities are organised into 2 legal units: one which is performing the activity and the other which is managing the human resources for the other unit.

18. Eurostat Exercice 9 A GEG (global enterprise group) is manufacturing footwear. It has activities in 2 countries and organises them into 3 legal units. In country 1, the group performs an activity of tanning of leather (2 legal units: one with the manufacturing activity and the other which manages the human resources). In country 2, the group manufactures the footwear. The entire production of the enterprise in country 1 is sold as an input to the enterprise in country 2. At the global level, the GEG is made of one global enterprise with an activity of manufacture of footwear.

19. Eurostat Exercice 9 What should be the NACE code of the truncated enterprise in country 1? 151 152 Other answer:………………………………………………..

20. Eurostat Exercice 9 What should be the NACE code of the truncated enterprise in country 1? 151 152 Other answer:………………………………………………..