Registration of such structure of production which works directly for the consumer, provides "modulation" of the share capitals from branch and the enterprises ineffective in more effective branches.
Complete control over activity of the enterprise is exercised, the owner has to carry out all main decisions, for example, concerning purchase, sale, attraction and the maintenance of the personnel; not to miss technical aspects which can arise in productions, in advertizing and in distribution of production from attention.
Growth of share prices and profit, increase in the income of owners of the capital. The main place is taken by fight for deduction of the share of the market, growth of capacities, in comparison with reduction of costs, fades into the background.
At individual business and partnership owners of real estate and financial assets directly operate these assets and them control. But in large corporations which actions are widely distributed among hundreds of thousands of owners, there is a considerable divergence between functions of property and control.
There is a decrease in sales volumes, and together with it and reduction arrived that stimulates outflow of the capital from branch. At this stage the only purpose of the enterprise is the survival (viability preservation), that is continuation of its operations during the certain period of time, often not how many for the sake of achievement of a certain profit level, how many for minimization of losses.
Small enterprises can be created as a result of allocation from structure of the operating enterprise, association, the organization. In these cases that organization (the enterprise from which the small enterprise was allocated, acts as his founder.
Joint-stock company - the voluntary organization of legal entities and citizens (including and foreign) for joint activity by association of their deposits and a share issue on all cost of an authorized capital.
After market strategy is led, the following instrument of realization of criterion function of the enterprise providing steady receiving profit is the planning directed on achievement of the objectives of the enterprise.
Many enterprises of public property, as well as private firms, sell that they make. The most known examples such are the nationalized branches, for example: coal mining, electricity generation and railway transport. These enterprises public corporations operate.
The main advantage of small business that it is directed on direct satisfaction of vital needs of the person, and even in the most severe times our centralized economy could not do without assumption of individual work in services industry.
This voluntary association of citizens on the basis of membership for the joint production activity based on their personal labor and other participation and association by his members (participants property share a contribution. Working cooperatives are the commercial organization.
The main working tool in realization of criterion functions of the enterprise, is market strategy within which it is realized competitive advantages of the enterprise. In the international theory and practice of business distinguish three main types of market strategy of the enterprise.
Control of cooperative is exercised committee - usually it is employees. Combining this work with another. They get out members of cooperative. The current work of cooperative is conducted by managing directors. Occupied here full time, appointed members of electoral committee.
The such firm is also called business of one person, or a private property. The owner has material resources and the capital equipment necessary for a production activity, or gets them, and also personally controls activity of the enterprise.
Character of these purposes of the enterprise is defined by state of the economy in general, tendencies of development of concrete branch to which activity of firm, and also a stage of a cycle of life of the enterprise belongs.
Board of governors works. At first sight, heads of these corporations have same duties, as at directors of the companies. The major distinction consists how they get on senior positions.