Economy as a science studies the theoretical bases and practical forms of activity of market structures; mechanisms of cooperation of subjects on the basis of the financial work of the elements of society. In the presence of market relations, the main figure is the entrepreneur. This status is acquired by registering with municipal authorities (tax authorities).
Enterprise and its role in a market economy
In Section 1 "Enterprise Economics" the main concept is an economic entity that has administrative, organizational and financial independence. A business entity can be an individual or their association.
As a result, an enterprise in a market economy is a subject of commercial activity. This entity acts independently with the aim of producing products, providing works or services to meet the needs of customers and generate income.
The main task of an enterprise in a market economy is to maximize profits bysale of goods on the basis of which the needs of staff and business owners are satisfied.
The company also has common goals, which are determined by the founder, the size of the authorized capital, the impact of the external and internal environment on the company.
Firms have different focus, the main directions in their work are:
- marketing and market research;
- innovation as research;
- manufacture of products, product lines;
- sale, which is aimed at selling goods, works, services;
- logistics that provides production with all the necessary resources;
- finance includes pricing, accounting, study, planning;
- service as a warranty method for product maintenance, providing spare parts for repairs;
- social activities that are aimed at supporting a decent level of work, creating social infrastructure facilities of the company, etc.
Company classification
Companies are grouped according to different aspects for classification purposes.
Accessory:
- private companies that operate independently;
- budgetary companies in which the capital consists of municipal funds, and management is entirely in the power of the state;
- mixed, dominated by the municipal part.
By company size:
- small (small);
- medium;
- large.
By characterwork:
- product of goods;
- provision of services.
By industry:
- insurance;
- industrial;
- agricultural;
- trading;
- banking.
According to legal status:
- Individual entrepreneurs. This form is characterized by commercial work without registration of a legal entity.
- Business partnerships and companies.
Basic legal forms
Let's describe the most popular organizational and legal forms.
A simple partnership can be concluded in the form of an agreement between two or more persons combining their contributions without forming a legal entity to organize activities and generate income.
Full partnership: when concluding an agreement, its participants carry out activities on behalf of the partnership and are liable with all their property. When managing commercial work, all opinions of those involved are taken into account, and the decision is made with their common consent. They are usually small, easy to manage, and common in agriculture and service delivery.
Fellowship that is based on faith. Activities are carried out on behalf of the partnership, general partners are liable for obligations with all their property and contributions only within the limits of the amounts paid without a role in commercial work. This form of partnership is inherent in big business.
Limited Liability Company. This isthe fundamental form in which the capital is distributed among the participants in accordance with the founding documents. At the same time, all participants do not bear obligations, but bear the risk of loss within the framework of their own payments. This form of commercial activity is typical for medium and small companies.
Joint stock company. The share capital is divided into shares. Shareholders of this company have no obligation, but bear the risk of loss within the limits of their shares. This form is typical mainly for large companies that need financial resources.
Production cooperatives. This is a form of voluntary association of people, members of a cooperative, for the mutual production of products and the provision of services. This activity is based on the share participation of contributors.
Non-profit organizations are engaged in activities that are not focused on generating income.
Essence of the company economy idea
In the modern world, the enterprise is the main link of the entire economy, as thanks to companies, the goods necessary for people, jobs and services are created.
We live in a market economy, and only those who skillfully respond to changes in the market, the mechanism of production, and can ensure profitability and efficiency survive. These are difficulties that the company's economics helps to solve.
The enterprise as a financial object is placed at the center of the entire financial life of the state, as it provides state income. The success of each company will affect the level of GDP,social development of society as a whole is the same as the level of satisfaction of the inhabitants of the state.
In principle, it is assumed that the economic development of the enterprise uses scientific and technological progress. In this situation, the combination of low production costs and high profit levels with the release of quality products will be optimal.
Many scientists have been considering the essence of the term under study for centuries.
The concept of enterprise economics in the works of McConnell K. and Brew S. is associated with the study of human behavior in the process of production, distribution and consumption of material goods and services in the world of scarce resources. Scientists refer to resources: land, capital, labor and the ability of an entrepreneur.
The economics of an enterprise is understood as a system of knowledge that is associated with the process of development and decision-making by an economic entity in the course of its activities.
The term under study implies a connection with a number of other economic definitions.
Economics of an enterprise is mainly widely used in conjunction with the concepts of managing a subject of market relations.
Any enterprise characterizes a form of organization linking user and producer with the help of the market to solve major financial difficulties:
- What to produce? This issue is being addressed through a daily study of residents' purchases.
- How to produce? This question characterizes the presence of competition between manufacturers, as each chooses its own strategy.struggle (price, competitive, know-how), while increasing profits and reducing costs.
- For whom to produce? In this case, market conditions are determined.
Subject and objectives of the course
Currently, the traditional definition of the concept is interpreted in the textbook "Enterprise Economics" by Samuelson as follows. Economics is the science of how a society uses certain limited financial resources to produce the right goods and distribute them to different groups of people.
Depending on the level of research into the actions and phenomena of financial life, the economy is divided into macro- and microeconomics.
Macroeconomics: Essence
Macroeconomics studies the formation of complex demand and supply of state income and GDP, inflation and unemployment, analyzes the impact of government fiscal policy on economic development. In other words, it sets itself the task of presenting a general picture of the development of the state economy and the relationships between its sectors.
Microeconomics: essence
Microeconomics is the study of how production volumes and prices for certain products are determined, how industrial sectors, commodity and money markets and households develop and function.
The company's economy studies the organizational and legislative forms of business, the material and technical base of production, ways to determine its productivity, pricing issues and the formation of industrial costs, methods of technicaleconomic justification of investment projects, resource saving and issues of environmental productivity of secondary material and energy resources.
Economics of enterprises and organizations is closely related to such disciplines as "General Economic Theory", "Management", "Marketing", "Accounting".
Relationship between micro-, macroeconomics and the term under study
Of course, macroeconomics, microeconomics and company economics are interconnected.
Currently, in the market conditions of companies' activities, the requirements for managers and specialists are increasing dramatically, since any company directly depends on the competence of staff, on knowledge of the theory and practice of market relations. If earlier the formation of the ability to think economically was considered the main thing in the training of a specialist, then in modern conditions this is no longer enough.
In any production area, a young specialist will have to join the system of new financial relations on issues of economics and management at the enterprise, in other words, to the system of relations between business people. A modern specialist should be enterprising, ready to tempt fate, to feel personal responsibility for their actions.
Principles of enterprise economics
Among the main principles are:
- Independence. The company itself manages its resources, chooses what to create and in what quantities, which counterparties will be with itwork.
- Isolation. All decisions that relate to the work of the company correlate with its capabilities.
- Generating income. This principle allows you to understand the economic growth of the company. A profitable enterprise can ensure its development and pay its obligations as a taxpayer.
- Self-financing. Financial development of the company through income and depreciation.
- Planning. Improving the dynamics of the company's economic performance and its ability to adapt to market conditions.
- Predictability. Creating forecasts, different options for the economic growth of the company.
- Government regulation.
General scientific methods of economics as a science
In the textbook "Economics of the Enterprise" section 2, as a rule, is devoted to the study of scientific methods.
General scientific and specific methods and methods are used in economic research.
General scientific methods include:
- The method of scientific abstraction. It consists in abstraction in the process of cognition from small phenomena, insignificant qualities and the identification of common, significant features, in the knowledge of the essence of phenomena.
- The method of induction - a general conclusion is made on the basis of some reasons, in other words, decisions are made from the personal to the general, from facts to theory.
- The method of deduction implies the reverse approach - from the general to the particular and personal.
- Hypothesis - a scientific conjecture that was put forward to explain some phenomenon and requirestesting in practice and theoretical justification to become a reliable scientific theory.
- Method of comparative study - comparison of personal and general characteristics to determine the best results.
- Experimental - testing the veracity of hypotheses.
Specific methods
Specific ways include:
- statistical and economic method for the development of phenomena and actions based on large-scale digital data (methods: financial grouping, averages, relative values, graphic);
- monographic method - the study of some parts of the total population that are characteristic of the characteristics of the objects under study;
- calculation-constructive allows you to find real methods of scientifically reasoned solutions;
- balance method of coordinating all characteristics that reflect the essence of a phenomenon or process;
- economic-mathematical - allows you to use computers to solve multi-factor financial issues.
Conclusion
The economics of an enterprise is the financial result of work in the past and current period of time, expressed in the efficiency of the use of resources for each studied interval.
