Download presentation enterprise in the system of market economy. Firm on the market

The presentation is intended to study the section "Economics" in the course of studying social studies, target audience: grades 10-11. The content of the presentation presents the material of the textbook L. N. Bogolyubov "Social Science" Grade 11 with diagrams and illustrations. Separate slides allow you to organize a problematic conversation and repeat the material.

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Lesson topic: Firms in economics. Smirnova Svetlana Nikolaevna Novokuznetsk, Kuznetsk Industrial College

Lesson plan: What is a firm? Factors of production and factor income Economic and accounting costs Taxes paid by enterprises

The firm is commercial organization, carrying out the costs of economic resources for the manufacture of goods and services sold on the market. What is the main purpose of the firm? What does profit depend on? profit Selection of the type and volume of goods produced Production technologies Proper use of the main production resources Ability to manage the production process and sell finished products

Production is the transformation of economic resources or factors of production into goods and services. Factors of production: labor land capital? Which of the 4 factors of production binds together all the rest of entrepreneurship. What problem of the economy is this connected with?

Each factor of production has a specific owner who must receive payment for the use of his resource. The amount of payment depends on the quantity and quality of the factor of production. What determines the amount of payment for the resource? Are you the owner of any resource?

Factors of production and factor income Labor Land Capital Entrepreneurial ability Wage Rent Percentage Profit

Capital (from lat. capitalis - main) - property that can generate income, i.e. source of income in the form of means of production. The property of capital is owned by the firm. Types of capital: Physical - means of production created by people Financial - money used to acquire physical capital Investment - investment of material and Money in production Loan capital - free cash provided on a loan, on terms of repayment and payment

Cost of production is the cost to the producer of acquiring and using factors of production. Economic costs are the payments a firm must make to suppliers. necessary resources to divert these resources from use in other industries.

Internal (implicit) costs - include the cost own resource and are equal to the monetary payments that could be received when using the resource if its owner invested it in someone else's business. External (accounting) costs are the amount of cash payments that the firm makes to pay for the necessary resources. fixed costs Variable Costs Owner of the resource constantly solves the problem economic choice: whether it is worth continuing your business or you can find a more profitable option for using resources.

Production costs Internal External (accounting) Economic profit - the difference between the total revenue of the firm and economic costs. Accounting profit is the difference between total revenue and accounting costs.

Fixed costs are the portion of total costs that does not depend on this moment time from the volume of output. Variable costs are part of the total costs, the amount of which depends on the volume of production and sales of products. An entrepreneur can only manage variable costs. ? Depreciation is a decrease in the cost of capital resources as they wear out in the process of production use.

What means efficient business? Effect (in economics) - a specific positive result of any activity (for example, an increase in profits received by the company compared to the previous year) Efficiency - the effectiveness of the process, defined as the ratio of the effect, result to costs. Profitability is the ratio of the profit received by the enterprise for a certain period to the costs incurred during the same period. Profitability = profit costs

Taxes are obligatory payments of physical and legal entities the state. Three systems of taxation Proportional tax Progressive tax Regressive tax 59% - American economist Laffer

Taxes Direct Indirect Obligatory payments levied by the state on the income or property of legal entities and individuals: income tax from the population profit tax from firms (35%) tax on property and transactions with it. Established in the form of surcharges on the price of goods and services excise duties sales tax partially VAT (18%) customs duties export tax

Taxes paid by businesses Direct corporate tax Indirect corporate tax Income tax Value added tax (VAT)

Literature: Textbook Social Science Grade 11, ed. L.N. Bogolyubov.

An enterprise as a subject of a market economy An enterprise is a production unit within which a worker is directly connected with the means and objects of labor and products are created or services are provided.

The company has the following characteristic features: Production and technical unity - close technological connection of all shops, sections, units, jobs. Organizational and administrative independence - territorial isolation, a single team of employees, full responsibility of management for the results of work. economic independence - separate property, independence in the choice of activities, suppliers and consumers, in setting prices for their products, in relations with state and financial and credit institutions, in developing plans. the rights of a legal entity - the presence of a name, legal address, bank accounts, printing.

Main Components production activities Means of labor Object of labor Living labor The combination of these components takes place at the enterprise.

Interests of the main market participants economic relations in the market is a relationship of exchange. Interacting with each other, the main subjects economic activity make a continuous circulation of resources, products and incomes. At the same time, each of the market participants has its own interest in the process of this cycle.

All subjects of economic activity in interconnection constitute a single economic space of the country. However, it is quite obvious that manufacturers, i.e. enterprises, occupy a pivotal position in this space. This is determined by the fact that an equivalent market exchange is possible only in the presence of produced goods and services. All external factors that affect the enterprise can be divided into two groups: direct and indirect action. The main function of the state in regulating the economic life of the country is to establish legal regulations functioning of economic units. Every company has a specific legal status established on the basis of the Civil Code (CC) Russian Federation, which determines the procedure for conducting business by enterprises, the mechanism for transferring taxes, etc.

Functions The functions of the state include antimonopoly regulation, creation of conditions for the development of civilized market relations among competitors. It also regulates the investment sphere through monetary and credit policy. This policy is based on the impact on price dynamics and the level of interest rates. Through tax rates, tax breaks, maneuvering interest rates, loan capital, public procurement and subsidies, the state develops the national economy in the desired direction. the functions of the state are also the fight against inflation, the distribution of income, ensuring economic security, environmental protection

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Firms in Economics What is a firm? Factors of production and factor income Economic and accounting costs Fixed and variable costs production Taxes paid by enterprises

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A firm is a commercial organization that spends economic resources for the manufacture of goods and services sold on the market. The goal is to generate income through the rational use of basic production resources.

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Factors of production and factor incomes Labor Land Capital Entrepreneurial ability Physical capital financial capital Investments Loan capital Wages Rent Interest Profit

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In a market economy, the manufacturer forms the offer of goods and services Revenue (or gross income) is the income of the producer from the products he sells. Profit is the difference between income and costs. The goal of the manufacturer in a market economy is to get the maximum profit at the minimum cost.

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Choose the correct answer. The producer's income from the products he sells is called Profit Revenue Costs Consumption

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Costs Costs of production are the costs of the producer for the acquisition and use of factors of production Economic costs are those payments that the firm must make to suppliers of the necessary resources in order to divert these resources from use in other industries Internal Cost of own resource External (accounting) payments to suppliers labor resources, raw materials, fuels, services, etc.

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Internal (implicit) costs are equal to the monetary payments that could be received for an independently used resource if its owner invested it in someone else's business. External (accounting) costs are the amount of cash payments that the firm makes to pay for the necessary resources. Fixed costs Variable costs

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Depreciation - a decrease in the cost of capital resources as they wear out in the process of production use

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The atelier purchases fabrics, threads and accessories for tailoring. Costs of the company - Internal, variable Internal, constant External, variable External, constant A citizen organized a hotel for dogs and cats on his suburban area: he built a house and open enclosures, bought food. The citizen himself and his family work in a hotel. What are internal costs? Purchasing fodder Construction of enclosures Equipment at home Land use

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Profit Economic profit is the difference between total revenue and economic costs Accounting profit is the difference between total revenue and accounting costs

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Are judgments about the firm's profit correct? A. Economic profit takes into account the internal and external costs of the firm. B. Accounting profit is obtained by subtracting the sum of the firm's external costs from sales revenue. Only A is true Only B is true Both statements are correct Both statements are wrong

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What is an efficient business? Effect (in economics) - a specific positive result of any activity (for example, an increase in profits received by the company compared to the previous year) Efficiency - the effectiveness of the process, defined as the ratio of the effect, result to costs. Profitability is the ratio of the profit received by the enterprise for a certain period to the costs incurred during the same period. Profitability = profit costs

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Perfect competition (perfect competition) - a market that meets the following conditions: a very large number of firms operate on the market, goods are sold at free prices, firms produce homogeneous goods, any new firm can freely enter the market, economic information is fully accessible to everyone, the firm - the recipient of the price. 18. Firm in the market

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Imperfect competition is a market where at least one of the conditions is missing. perfect competition. Market types imperfect competition: Monopoly Monopolistic competition Oligopoly 18. Firm in the market

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Perfect competition Two ways to determine the size of production that maximizes profit: Compare total revenue with total costs at different levels of production. Find the level of production at which marginal revenue and marginal cost are equal. 18. Firm in the market

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Income and costs When releasing a small amount of goods, the costs are likely to be higher than income and the company will incur a loss; upon reaching a certain significant volume of production, the company's income will exceed the costs and it will make a profit; with a further increase in production, due to diminishing returns of the variable factor, income will decrease and, ultimately, costs will again exceed income and the company will again be at a loss. 18. Firm in the market

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Profit maximization by a competitive firm Competitive Firm To maximize profit, a business must produce such a quantity of goods that its marginal cost equals its marginal revenue, and sell it at the market price. 18. Firm in the market

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Monopoly (monopoly, from the Greek monos - one and poleo - sell) - a market in which one firm operates, selling a unique good (good or service) at a price set by it. 18. Firm in the market

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Monopoly Two ways to determine the size of profit-maximizing production: Compare total revenue with total costs at different levels of production. Find the level of production at which marginal revenue and marginal cost are equal. At the first stage, the monopoly determines the volume of production at which it can achieve maximum profit. In the second stage, the monopoly, knowing the volume of production that maximizes profit, will determine the price it will charge for its product. 18. Firm in the market

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Profit maximization by a monopoly A monopoly firm, in order to maximize profit, must produce such a quantity of goods that its marginal cost equals its marginal revenue, and sell it at a monopoly high price. 18. Firm in the market

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Monopolistic competition is a market with free entry, in which there are many firms that independently set prices for their products, produce a differentiated product and act strategically. 18. Firm in the market

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Features of the behavior of the company In conditions of monopolistic competition: In the short term, the company behaves like a monopoly. In the long run, the firm finds itself in conditions of free competition. 18. Firm in the market

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Oligopoly (oligopoly, from the Greek oligos - small and poleo - sell) - a market in which there is a small number of firms selling similar or identical products and acting strategically. 18. Firm in the market

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Variants of the company's behavior in an oligopoly: Cartel Price leadership Quantitative leadership Strategic behavior 18. Firm in the market

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Behavior of a firm A cartel is an agreement between firms to divide markets and set prices. Price leadership is an implicit understanding between firms about setting prices depending on the change in the price of the largest producer. Quantity leadership is the practice of firms in an oligopoly to rely on information about the expected output of goods by the leading firm when making a decision. Strategic behavior - interaction between several firms based on miscalculation options responses of some firms to actions taken by others. 18. Firm in the market

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Edward Chamberlin (1866-1967), American economist, one of the creators of the theory of monopolistic competition. His book The Theory of Monopolistic Competition (1933) marked the beginning of new era in the theory of market structures. 18. Firm in the market

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Joan Robinson (1903-1983), English economist, one of the creators of the theory of imperfect competition, the only famous woman economist. In The Theory of Imperfect Competition (1933) she presented new theory market structures other than perfect competition and monopoly. 18. Firm in the market

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Conclusions (2) If a firm is a monopoly, to obtain maximum profit it must: produce such a quantity of goods that its marginal cost equals marginal revenue receive normal and monopoly profits. Under monopolistic competition, the firm largely operates in the short run as a monopoly, but in the long run as in conditions of perfect competition. 18. Firm in the market

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2 Spheres and divisions of the economy. Features and directions of structural adjustment in Russia. Enterprise functioning environment: external and internal.

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Spheres and subdivisions of the economy. Features and directions of structural adjustment in Russia.

3 Social production is divided into two large areas: Material production Non-productive sphere Material production includes: Industry, Agriculture and forestry Freight transport Communication (serving material production) Construction Trade Public catering Information and computing services Other ...

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4 NON-PRODUCTION SPHERE INCLUDES: Housing and communal services Passenger transport Communications (serving non-production organizations and the population) Health care Physical culture and social security Public education Culture and art Science and scientific services Credit and insurance Activities of the administration bodies

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5 Spheres of economy are subdivided into specialized branches. Industry - a group of qualitatively homogeneous economic units (enterprises, organizations, institutions), characterized by special conditions production in the system of social division of labor, homogeneous products and performing a common (specific) function in the national economy. Each of the specialized industries, in turn, is subdivided into complex industries and types of industries.

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6 Interindustry complexes An interindustry complex is an integration structure that characterizes the interaction of various industries and their elements, different stages of production and distribution of the product. Intersectoral complexes arise and develop both within a separate sector of the economy and between different sectors. As part of the industry, for example, there are fuel and energy, metallurgical, machine-building and other complexes. The agro-industrial and construction complexes, which unite different sectors of the national economy, are distinguished by a more complex structure.

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7 Intersectoral national economic complexes can be conditionally divided into target and functional ones. The selection of target complexes is based on the reproductive principle and the criterion of participation in the creation final product. For example, let us single out the machine-building complex, the fuel and energy and agro-industrial complexes, the forestry and mineral resource complexes, the transport complex, etc. The group of functional complexes includes the principle and criterion of specialization of the complex for certain function. Here we can single out investment and infrastructure complexes, scientific and technical, and to a certain extent, ecological complex.

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8 Sectors of the economy A sector is a set of institutional units with similar economic goals, functions and behavior. These typically include the business, household, public institutions, as well as external. The enterprise sector is usually subdivided into the financial enterprise sector and the non-financial enterprise sector.

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9 The non-financial enterprise sector includes enterprises engaged in the production of goods and services for profit, and non-profit organizations not pursuing profit-making purposes. The financial enterprise sector covers institutional units engaged in financial intermediation. Sector of public institutions - a set of legislative, judicial and executive authorities, funds social security and non-profit organizations controlled by them. The household sector includes mainly consuming units, i.e. households and the enterprises formed by them.

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10 The external sector, or the “rest of the world” sector, is the set of institutional units that are non-residents of a given country (i.e. located outside the country) economic ties, as well as embassies, consulates, military bases, international organizations located in this country. According to the degree of connection with the market, they distinguish: The market sector covers the production of goods and services intended for sale on the market at prices that have a significant impact on the demand for these goods or services, as well as the exchange of goods and services by barter, wages in kind and stocks finished products. Non-market sector - the production of products and services intended for use directly by producers or owners of the enterprise, as well as provided to other consumers free of charge or at prices that do not affect demand.

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11 The main methods of state structural policy are: state target programs, state investments, purchases and subsidies, various tax breaks individual enterprises, regions or groups of industries. Types of economic structures sectoral intersectoral reproduction regional other types

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The purpose of the creation and operation of the enterprise. Types of enterprises.

12 An enterprise is an independent economic entity created by an entrepreneur or an association of entrepreneurs to produce products, perform work and provide services in order to meet social needs and make a profit. Directions of the organization of an industrial enterprise Scientific organization of production Scientific organization of labor Scientific organization of management Creation of an optimal technical and technological system Building healthy formal relations in a team of workers This is a system of technical, economic and humanitarian means

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13 An enterprise is a commercial organization whose main purpose is to make a profit. Each company in the market conditions must comply with the following principles: Profitability (maximum result at the lowest cost) Financial stability Making a profit

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14 Types of enterprises

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15 Small business development has a number of advantages: Increase in the number of owners (formation of the middle class) Growth in the share of the economically active population (increase in incomes of citizens, the welfare of various social groups) Employment of workers released in the public sector Elimination of the monopoly of producers, creation of a competitive environment Selection of the most energetic, capable individuals, wishing for self-realization Creation of new jobs with relatively low capital costs.

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16 Classification by form of ownership Private enterprises can exist in the form of independent independent companies or in the form of associations created both on the basis of a participation system and on the basis of agreements between the participants of the association. State-owned enterprises act, along with private firms, as counterparties in economic turnover. Under state enterprises are understood as purely state, and mixed, or semi-state.

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17 Classification by organizational and legal forms Business partnerships and companies are recognized as commercial organizations with share (contributions) of founders (participants) authorized (reserve) capital. Participants business partnerships and societies can be individual entrepreneurs and legal entities (commercial enterprises). Associations of persons are based on the personal participation of their members in the conduct of the affairs of the company.

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The purpose of the creation and operation of the enterprise. Types of enterprises.

18 The pooling of capital involves the addition of only capital, but not the activities of investors: the management and operational management of the enterprise is carried out by specially created bodies. Responsibility for the obligations of capital pooling is borne by the enterprise itself. Business partnerships can be created in the form of a general partnership and limited partnership (limited partnership), business companies - in the form joint-stock company, societies with limited liability and additional liability companies. Business partnerships are associations of persons, business companies - associations of capital.

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The purpose of the creation and operation of the enterprise. Types of enterprises.

19 A partnership is recognized as a full partnership, the participants of which (general partners), in accordance with the agreement concluded between them, are engaged in entrepreneurial activities on behalf of the partnership and are liable for its obligations with their property. Characteristic features of a full partnership: based on an agreement between its participants; a commercial organization in the activity assumes the personal participation of all comrades; cannot be created by one person and a person can be a participant in only one full partnership; entrepreneurial activity is carried out on behalf of a partnership - a legal entity; the participants bear responsibility for its obligations with their property. the founding document is the memorandum of association.

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20 A limited partnership (limited partnership) is a partnership in which, along with the participants acting on behalf of the partnership entrepreneurial activity and liable for the obligations of the partnership with their property (general partners), there is one or more participants-contributors (limited partners), who bear the risk of losses associated with the activities of the partnership, within the limits of the amounts of contributions made by them and do not take part in the implementation of entrepreneurial activities by the partnership.

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21 A limited liability company (LLC) is a company established by one or more persons, the authorized capital of which is divided into shares of certain founding documents sizes; participants in a limited liability company are not liable for its obligations and bear the risk of losses associated with the activities of the company, to the extent of the value of their contributions. Main legal instruments, defining the position of LLC, are Civil Code RF and the federal law February 8, 1998 n. 14-FZ "On Limited Liability Companies" (came into force on March 1, 1998).

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22 Additional Liability Company (ALC) is a kind of economic companies. The peculiarity is that if the property of the company is insufficient to satisfy the claims of creditors, the participants in the ALC can be held liable for the debts of the company with their personal property, and in joint and several order. However, the amount of this liability is limited: it does not concern all of their property, as in a general partnership, but only part of it - the same multiple for all of the amount of contributions made (for example, three times, five times, etc.).

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23 Joint stock company (JSC) - a commercial organization, the authorized capital of which is formed at the expense of the nominal value of shares acquired by shareholders and certifying the obligations of these shareholders. The legal status of AQ is determined by the Civil Code and the Federal Law of December 26, 1995 "On Joint Stock Companies" (adopted by the State Duma on November 24, 1995). In the characteristics of a joint-stock company, it is necessary to highlight the following: joint-stock company is a commercial organization, i.e. the main purpose of the activity is profit; the authorized capital of a JSC is divided into a certain number of equal shares, each of which corresponds to a share; JSC participants (shareholders) are not liable for its obligations, and the company is not liable for the debts of its participants; corporate name of JSC - CJSC "New Technologies"

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The purpose of the creation and operation of the enterprise. Types of enterprises.

24 Joint stock type enterprises have the following advantages: the ability to attract additional investment by issuing shares; limitation of shareholders' liability in case of general economic interest And efficient operation enterprises; business risk reduction; facilitating the flow of capital funds from industry to industry; reducing the JSC's dependence on the composition of shareholders; availability of a proven mechanism for the activities of JSC, based on the joint-stock legislation. The joint-stock company form is currently the most common form of enterprise organization.

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25 The economic basis of JSC activity is the authorized capital. The authorized capital of a joint-stock company is made up of the nominal value of shares acquired by shareholders and determines minimum size property of the company that guarantees the interests of its creditors.

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Types of enterprises.

26 The authorized capital of a JSC is formed in two ways: by public subscription for shares; distribution of shares among the founders. In the first case, an open joint-stock company is formed, in the second, a closed one. An open joint-stock company is characterized by the following: it has the right to conduct an open subscription for shares issued by it and their free sale; shareholders can freely alienate their shares without agreement with other shareholders of this company and without restrictions in the choice of buyers; the minimum amount of the authorized capital must be at least 1000 times the minimum wage; is obliged to publish annually for general information the annual report, balance sheet, profit and loss account.

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The purpose of the creation and operation of the enterprise. Types of enterprises.

27 A closed society has a number of distinctive features: shares can be distributed only among the founders or other predetermined circle of persons; is not entitled to conduct an open subscription for shares; the number of participants should not exceed 50; the minimum amount of the authorized capital must be at least 100 times the minimum wage (Article 26 of the Law); shareholders of a closed company have preemptive right acquisition of shares sold by other shareholders of this company

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28 Production cooperatives (artels) are voluntary associations of citizens on the basis of membership for joint production or other economic activities based on their personal labor and other participation and association of its members (participants) on the basis of property shares. Law and constituent documents production cooperative the participation of legal entities in its activities may be envisaged.

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29 A unitary enterprise (UE) is a commercial organization that is not endowed with the right of ownership of the property assigned to it by the owner. In UE, property is indivisible and cannot be distributed among contributions (shares, shares), including between employees of the enterprise. They are created and operate on the basis of only one form of ownership - state or municipal, in connection with which their founders are the state (a subject of the Federation) or a municipality.

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Business associations

30 Business associations A cartel is an association, as a rule, of enterprises in the same industry, involving a single market strategy, including the agreed pricing policy, a joint position in relation to large customers, the exchange of information, etc. The cartel is characterized by the following features: the contractual nature of the association; financial and legal independence; joint activities for the sale of products.

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31 A syndicate is a kind of cartel agreement that involves the sale of the products of its participants through a single marketing body created in the form of a joint-stock company or a limited liability company. Syndicate members retain their legal and commercial independence, and sometimes their own distribution network. Pools also belong to cartel-type associations. A pool is an association of entrepreneurs that provides for a special procedure for distributing the profits of its participants. The profits of the pool participants enter the “common pot”, and then are distributed among them in a predetermined proportion.

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32 The trust is an association in which various enterprises previously owned by different entrepreneurs merge into a single production complex, losing their legal and economic independence. A concern is an association of independent enterprises connected through a system of participation, personal unions, patent and licensing agreements, financing, and close industrial cooperation. The holding is a "holding" (parent, head) company, which, having a controlling stake in enterprises united in a single structure, ensures their management and control over their activities.

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33 A financial and industrial group (FIG) is a set of legal entities acting as parent and subsidiary companies, or who have fully or partially combined their tangible and intangible assets on the basis of an agreement on the creation of a financial and industrial group for the purpose of technological or economic integration for the implementation of investment and other projects and programs aimed at increasing competitiveness and expanding markets for goods and services, increasing production efficiency, creating new jobs (Federal Law of November 30, 1995 No. 190-FZ “On Financial and Industrial Groups”, Article 2).

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Entrepreneurial activity of the enterprise. The concept of a legal entity.

34 Entrepreneurial activity - proactive independent activity aimed at satisfying needs and making a profit. Entrepreneurship is understood as an activity carried out by individuals, enterprises or organizations for the production, provision of services or the purchase and sale of goods in exchange for other goods or money for the mutual benefit of interested persons or enterprises, organizations. Entrepreneurial activity in the Russian Federation can be carried out by citizens ( individuals), as well as enterprises (legal entities).

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35 The most important features of entrepreneurship include: autonomy and independence of business entities; economic interest. the main objective entrepreneurship - obtaining the maximum possible profit; economic risk and responsibility. No matter how carefully calculated, uncertainty and risk remain.

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Entrepreneurial activity of the enterprise. The concept of a legal entity.

36 For the formation of entrepreneurship, certain conditions are necessary: ​​economic, social, legal, etc. Economic conditions are, first of all, the supply of goods and the demand for them; types of goods that buyers can purchase; the amount of money they can spend on these purchases; excess or insufficiency of jobs, labor force, affecting the level wages workers, i.e. on their ability to purchase goods.

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Entrepreneurial activity of the enterprise. The concept of a legal entity.

37 Close to the economic are the social conditions for the formation of entrepreneurship. First of all, this is the desire of buyers to purchase goods that meet certain tastes and fashion. Needs may change at different stages. An essential role is played by moral and religious norms, depending on the socio-cultural environment. Such regulations have a direct impact on the lifestyle of consumers and, through this, on their demand for goods.

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38 Creation of necessary legal conditions. First of all we are talking on laws governing business activities that create the most favorable conditions for the development of entrepreneurship. Laws should provide: 1) a simplified and accelerated procedure for opening and registering enterprises; 2) protection of the entrepreneur from state bureaucracy; 3) improvement of tax legislation in the direction of motivating industrial entrepreneurial activity; 4) development of joint activities of entrepreneurs in Russia with foreign countries etc.

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39 A legal entity is an organization that owns, manages or manages separate property, is liable for its obligations with this property, can acquire or exercise property and personal non-property rights on its own behalf, bear obligations, be a plaintiff and answer in court. A legal entity is characterized by the following main features: Property liability; Independent property liability; Independent performance in civil circulation on your own behalf; organizational unity.

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40 Of no small importance is the choice of the form of entrepreneurship - individual or collective. By choosing an individual form, the entrepreneur acts at his own peril and risk. In case of failure, the owner bears full responsibility under the obligations of the enterprise and pays with its own funds and property. Having made a choice in favor of the collective form, the entrepreneur shares responsibility with partners in the enterprise. This form allows you to reduce the risk, attract additional resources.

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41 The choice of the form of the enterprise is a very responsible matter. It is necessary to take into account the economic and legal environment, the social order in which the enterprise has to operate. The next step is the formation of a production base. The enterprise enters into relations with equipment manufacturers, suppliers of raw materials and materials, with intermediary firms. Workers are hired through the labor exchange, through advertisements in the press and in other ways. An important stage is the attraction of financial resources. The shortage of funds can be overcome by issuing shares, i.e. partially transferring the rights to participate in the capital and profits of the enterprise, own debt obligations, as well as obtaining loans from commercial banks.

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42 Competition is the economic competition of manufacturers of identical products in the market to attract as many buyers as possible and thereby obtain the maximum benefit. Competition is an important means of control in a market system. Competition forces the manufacturer and resource suppliers to properly satisfy the wishes of consumers. Competition causes an expansion of production and a decrease in the price of the product to a level corresponding to the cost of production. Competition forces enterprises to fully perceive scientific and technological achievements, apply efficient equipment, technology, modern methods organization of production and labor.

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43 The opposite of competition is monopoly, in which there is only one seller and many buyers in the market. Being the only producer of this product, the monopolist sets a monopolistically high price for this product in the market. Before making a decision on the price, the monopolist studies the market demand, analyzes the costs of its production, the costs of selling products. The nature of the curve market demand is such that the higher the price, the lower the demand, and vice versa; the monopolist sets the price of the good and determines the volume of its production and sale.

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Enterprise functioning environment: external and internal.

44 The external environment of the enterprise includes: external economic factors; external political conditions; external legal components; external scientific and technical factors; communication external conditions; natural and climatic factors, etc. All these components external environment entrepreneurial enterprise to a greater or lesser extent affect the performance of its activities. The internal environment of the enterprise includes: production and technical factors; social conditions and components; economic forces; information component; marketing factor; factor business relations and behavior of employees.

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45 The external environment of an enterprise is a set of economic, political, legal, scientific and technical, communication, natural-geographical and other conditions and factors that have a direct or indirect impact for the operation of a business enterprise. The internal environment of an entrepreneurial enterprise is closely related to its external environment. It largely depends on the external environment of the enterprise, as well as on its goals and objectives.

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46 The study of the external business environment of the organization (enterprise) includes the study of suppliers of material, energy and other resources. The dependence of the enterprise on suppliers is very high. Late delivery, delivery of low-quality resources, replacement of some types of resources by others, overpricing of resources, etc. - all this makes the enterprise completely dependent on suppliers, creates great difficulties in work. Drawing. Business environment enterprises Enterprise Suppliers Competitors Consumers International sector State and municipal enterprises Infrastructure

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47 THANKS FOR YOUR ATTENTION!

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