2012 Economics of enterprise KROK University Spring 2012 Instructor Tetiana

production, distribution and consumption of goods and services. It aims

to explain how economies work and how economic agents interact.
Academic discipline
Field of science
Social science

Economics is the social science that studies the production, distribution, and consumption of goods and services.

* Economy is the human activity that consists in producing, exchanging, distributing, and consuming goods and services, studied by economics and realised inside an economic system.
* An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution , and consumption of goods and services of that area.

an enterprise
Types of enterprises
Types of associations
External environment of

enterprise activity
Property of enterprise

Lecture 1
An enterprise as the main element of Ukrainian economy

public or local authority or by other subjects to satisfy

public or personal needs by systematic realization of production, research and development, trade and other economic activity
(Commercial Code of Ukraine N 436-IV of 16.01.2003)
an organization that has the labor, financial, tangible, intangible and information resources, uses them to produce goods or provide services for the further implementation in order to reimburse incurred costs and to earn profit.
a separate integral system of technological, social and economic relations is a business unit - manufacturer of goods and services.

resources

Goods
(services)

Enterprise
(production process)

(also known as enterprise or firm) is an organization engaged

in the trade of goods, services, or both to consumers. Most of businesses are privately owned and administered to earn profit to increase the wealth of their owners. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning.


A company is a business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be made to exist in law and then a company is itself considered a “legal person".

United States, a company is a corporation — or, less

commonly, an association, partnership, or organized group of persons — to carry out an enterprise, whether incorporated or not.

In English law and in the Commonwealth countries a company is a corporation company registered under the Companies Acts or similar legislation. It does not include a partnership or any other unincorporated group of persons, although such an entity may be loosely described as a company.



to read!!!!!
* http://en.wikipedia.org/wiki/Company
http://en.wikipedia.org/wiki/Business

of Ukraine
Commercial Code of Ukraine
Civil Code of Ukraine
Budget Code of

Ukraine
Customs Code of Ukraine;
Labor Code of Ukraine
Law of Ukraine "On state registration of legal persons and physical persons – entrepreneurs”
Law of Ukraine "On Property“
Law of Ukraine "On Business Associations“
Law of Ukraine "On Joint Stock Companies“
to read!!!!!
http://www.bunews.com.ua/index.php?option=com_content&view=article&id=575:imperfect-evolution-ukraines-company-law-&catid=25:industry-&Itemid=34
http://www.asociacion-eurojuris.es/en/news/the-joint-stock-companies-law-of-ukraine-enters-into-effect/

Law of Ukraine "On the protection of economic competition “
Law

of Ukraine "On the protection against unfair competition“
Law of Ukraine "On Antimonopoly Committee of Ukraine"
Laws governing the investment and innovation
Law of Ukraine "On investment activity“
Law of Ukraine "On Protection of Foreign Investments in Ukraine“
Law of Ukraine "On innovation activity“
Law of Ukraine "On special regime of innovation activity of technoparks"
Law of Ukraine “On the Regime of Foreign Investments”
Law of Ukraine "About priority directions of innovation activity in Ukraine“
Law of Ukraine "On measures to improve the investment climate in Ukraine“
Law of Ukraine "On the elimination of discrimination in the taxation of business entities that are created using the property and funds of national origin“

Ukraine "On Banks and Banking Activity"
Law of Ukraine "On International

Economic Activity“
Law of Ukraine "On Securities and Stock Exchange"
Law of Ukraine "On Renewing Debtor's Solvency or Declaring it Bankrupt“

Tax legislation
Tax Code
Erdict of President of Ukraine "About the simplified system of taxation, accounting and reporting of small business“
Decree of CMU of Ukraine "About the patenting of certain types of business activities"

≈ limited partnership
Повне товариство ≈ general partnership
Товариство з

додатковою відповідальністю ≈ "additional liability company"
Товариство з обмеженою відповідальністю ≈ Ltd (UK) limited liability company Minimum capital = 1 minimum wage (UAH 960 -29.05.2011) .
Приватне підприємство ≈ Ltd (UK). No minimum capital.
Публічне акціонерне товариство since 29.04.2009: ≈ public JSC (UK),. Minimum capital UAH 630,000.
Приватне акціонерне товариство since 29.04.2009:: ≈ private JSC (UK),.

total amount of shareholders shall not exceed 100 persons;
the

shares shall be issued only privately;

Public Joint Stock company
the total amount of shareholders shall be more than 100 persons;
the shares shall be issued both privately and publicly;
the obligation to list and register on at least one stock exchange;

the total amount of Joint Stock company share capital is the same - at least 1250 times of the current minimal official salary.

The joint-stock company is one that has an authorized capital, divided into certain number of shares of definite equal nominal value and carries responsibility for their commitments only by its property. The stockholders are liable for the company only within the limits of the shares they own.
The joint-stock company has the right to issue bonds and other valuable papers, as provided by Ukrainian law about valuable papers and stock-exchange.

Financial businesses (banks, insurance)
Information businesses (movies studios, publishers and packaged

software companies).
Manufacturers
Real estate businesses
Retailers and distributors
Service businesses (from house decorators to consulting firms, restaurant, and even entertainers)
Transportation
Utilities
Education
Health care

raw material, such as plants or minerals.
Financial businesses include

banks and other companies that generate profit through investment and management of capital.
Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies.
Manufacturers produce products, from raw materials or component parts, which they then sell at a profit. Companies that make physical goods, such as cars or pipes, are considered manufacturers.
Real estate businesses generate profit from the selling, renting, and development of properties comprising land, residential homes, and other kinds of buildings.
Retailers and distributors act as middle-men in getting goods produced by manufacturers to the intended consumer, generating a profit as a result of providing sales or distribution services. Most consumer-oriented stores and catalog companies are distributors or retailers.
Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government, other businesses, or consumers. Organizations ranging from house decorators to consulting firms, restaurants, and even entertainers are types of service businesses.
Transportation businesses deliver goods and individuals from location to location, generating a profit on the transportation costs.
Utilities produce public services such as electricity or sewage treatment, usually under a government charter.

– economic organization that is created by two or more

companies to coordinate their manufacturing, scientific and other activity to achieve their common economic and social goals.

Characteristics
Voluntarily
Certain or indefinite term
Legal entities

Types of associations
Association
Corporation
Consortium
Concern
Cartel
Syndicate

Holding
Financial group

social
Consumers
political
technological
geographical