What is the difference between an organization and a business. What is the difference between an organization and an enterprise: a practical aspect

The production of goods and services can be carried out with or without the formation of a legal entity.

Entity- this is an organization that owns, manages or manages separate property, is liable for its obligations with this property, can be a plaintiff and defendant in court.

Separate property- this is a property complex necessary for production functioning. In the practice of economic activity, a property complex is considered as a set of real estate objects owned by one owner (organization), including a land plot (or several plots) with a set of functionally interconnected buildings, structures, transmission devices, technological equipment, as well as household inventory, raw materials , production goods, income received as a result of the production process, rights of claim, rights of debt, as well as intangible assets. An enterprise is an integral technological complex with a closed production cycle, i.e. a property complex that includes elements that allow a business entity to independently produce products and thereby systematically make a profit. The set of elements of the property complex depends on the profile of activity, financial, economic, territorial and other conditions for the functioning of the enterprise.

In the legislation of most countries, the enterprise is not considered an independent subject of law; it does not recognize the nature of an economic entity that has separate property, its own balance sheet and enjoys the rights of a legal entity. The enterprise is considered as a certain property complex, which includes material and intangible elements and is an object of law. In the Civil Code of the Russian Federation, the term "enterprise" is used in relation to subjects and objects of law. An enterprise is a legal entity, i.e. a subject of civil law, a participant in entrepreneurial activity. This term applies only to state and municipal unitary enterprises (articles 113-115 of the Civil Code of the Russian Federation), which, as a commercial organization, are subject to state registration and act as a subject of law in various contracts and other legal relations.

At the same time, the term "enterprise" is used to refer to a certain type of objects of law. In this sense, the enterprise (Article 132 of the Civil Code of the Russian Federation) this is an industrial and economic complex, the property of which is completely separated from the property of the organization - this is the basic component of the organization's infrastructure (Fig. 3.1).

In accordance with current civil law organization is recognized as a legal entity only after state registration in the prescribed manner and must have certain inherent features, without which it cannot only be recognized as a legal entity, but also participate in legal economic turnover.

Rice. 3.1. The enterprise as an object and subject of law.

The main features that characterize the organization as a legal entity are as follows:

The presence of separate property, providing the material and technical possibility of the functioning of the organization, its economic independence and reliability;

The ability to act on one’s own behalf, i.e., in accordance with the law, to conclude all types of civil law contracts with business partners, consumers of products (works, services), suppliers of all types (raw materials, materials, fuel, energy, components, etc.) etc.), with citizens and other legal and natural persons;

The right (opportunity) to be a plaintiff, to bring claims to the guilty party, and also to be a defendant in court (arbitration court) in case of failure to fulfill obligations in accordance with the law and contracts;

Availability of a registration certificate required by law, and in specially stipulated cases, a license for the right to carry out certain specific types of activities.

An organization, as a legal entity, must have an independent balance sheet, correctly keep records of the costs of production and sale of products (works, services), and submit reports established by state bodies in a timely manner.

The formation and development of a common market not only opens up prospects in terms of economic interaction, but also introduces a number of concepts into the established domestic terminology that are not provided for by the Civil Code of the Russian Federation. One of these concepts is the company.

Company(companu) - a collective entity created on the basis of an agreement concluded between several persons (legal or natural) who decide to combine their money, property or enterprises for profit. Forms of companies are very diverse and each of them is characterized by a special type of relationship between its members and relationships with partners. But they are all characterized by the following basic elements: their own legal entity, different from the legal entity of its members; name of the company (firm); legal address; property (assets or share capital); management and control bodies; company formation agreement; the goal is to make a profit; inviolability of the capital of the company (members cannot redistribute among themselves in the form of profit property that is the property of the company and to which creditors of the company may have rights); when establishing commercial companies, mandatory registration in accordance with the established procedure.

As you can see, the term "company" is fully adequate to the domestic term "commercial organization" and both terms can be used as synonyms.

A commercial organization (company) may include more than one enterprise (single property complex) carrying out entrepreneurial activities within the organization (company), but several.

In accordance with Russian legislation, organizations are divided into two groups: non-commercial and commercial(Fig. 3.2).

consumer cooperative is created on the basis of a voluntary association of citizens and legal entities to meet the material and other needs of participants by creating a unity of property share contributions.

Income from entrepreneurial activity is distributed among the members of the cooperative. The charter of a consumer cooperative must contain: 1) name (includes an indication of the main purpose of the activity and the words "cooperative", "consumer union", "consumer society"); 2) location; 3) the procedure for managing activities, the composition and competence of the management bodies and the procedure for making decisions; 4) the amount of share contributions, the procedure for their payment and responsibility; 5) the procedure for compensating the members of the cooperative for their losses. Types of such cooperatives - ZhSK, GSK, etc.

Public and religious organizations - voluntary associations of citizens based on common interests to meet spiritual and other non-material needs. Participants are not liable for the obligations of the organization, and the organization - for the obligations of the participants. Entrepreneurial activities are allowed in accordance with the goals of the organization, for example, the sale of books by the Writers' Union.

Funds - are formed on the basis of voluntary contributions for the implementation of socially useful goals by citizens and legal entities that are not liable for the obligations of the fund, as well as the fund for the obligations of its founders. Entrepreneurial activity is allowed in accordance with the objectives of the fund. The Fund has the right to create a business company (CO) or participate in it.

Institutions– are created by the owners of the property for the implementation of managerial, socio-cultural and other functions of a non-commercial nature, financed (in whole or in part) by the founders. Responsible for obligations with their own funds, in case of their insufficiency, the owner bears subsidiary responsibility. The institution owns and uses the property in accordance with the objectives of the activity and tasks of the owner.

Associations of legal entities- are established by agreement to protect common interests and for coordination and are not liable for the obligations of members, while members of associations are liable in the manner prescribed in the constituent documents.

Previous

It would seem that the differences between the terms "enterprise" and "company" are not significant, so many people make the mistake of calling one another. Naturally, this is forgivable for a simple layman. But people directly involved in business need to know what each of these concepts is and how they differ from each other.

Definition

Company is an association of legal entities and / or individuals for the purpose of carrying out industrial, financial, trading or other economic activities that bring a stable income and profit. The company must necessarily have the status of a legal entity and may exist in the form of a partnership, association, firm, business association, corporation, etc.

Company is an organizational and separate economic entity that has the rights of a legal entity and was created for the production of products, their sale, performance of work, as well as the provision of services in order to fully or partially satisfy private or public needs and generate income and profit.

Comparison

Based on the definition of the terms "company" and "enterprise", it is clear that a company is necessarily a conglomerate (association) of commercial and industrial entrepreneurs, while an enterprise can be created by one or more legal entities and / or individuals.

A company can be engaged in several activities at the same time, that is, include various enterprises (hotels, factories, plants, shopping centers, mines, etc.). The enterprise is a separate specialized unit created to perform a certain type of activity (performance of work, production of products, provision of services).

The enterprise is managed by the top management, in the company all persons who have shares in the capital of the company have a voice in decision-making.

Findings site

  1. A company is an association of commercial and industrial entrepreneurs, while an enterprise can be created by one legal entity and / or individual.
  2. A company can combine several different enterprises engaged in various activities. An enterprise is a specialized unit created to carry out a specific type of activity.
  3. The enterprise is managed by the top management, the company is managed by a group of persons who have shares in the capital of the company.

The subjects of legal relations are called differently: company, legal entity, organization. But it is especially difficult to distinguish between a firm and an enterprise, because the difference between these concepts is barely perceptible. Nevertheless, understanding the differences is very important for future managers, personnel officers and lawyers, who will be able to use the terms correctly in their professional activities.

Definition

Firm- a commercial company carrying out entrepreneurial activities on a legal basis. A prerequisite for such work is official registration, the availability of constituent documents, assets, and reporting. Firm can refer to any legal form, be it LLC, JSC or ALC.

Company- an organizational and legal unit that carries out commercial activities for the production and sale of goods, the provision of services. As a rule, we are talking about large companies that occupy a serious place in the market. The company includes a significant amount of assets, including real estate, capital goods, receivables and payables, funds and exclusive rights.

Comparison

Thus, these concepts have in common their essence: development, profit making, conducting commercial activities. Otherwise, the differences are purely practical, since there are no legal definitions of a firm and an enterprise. Rather, it is about established traditions adopted in business. Thus, the scope of the concept of a firm is extremely wide: it includes both legal entities and individual entrepreneurs. Among other things, it includes the category enterprise.

At the same time, a property complex is called a firm, regardless of scale. It can be either a small retail outlet or a group of companies united in a single holding. An enterprise can only be considered a business entity that has solid assets. These can be city-forming organizations that have a significant impact on the business life of the region. At the same time, enterprises were originally called objects of the state form of ownership, but at the moment this practice has exhausted itself due to the active privatization of business entities.

Findings site

  1. The scope of concepts. The category "firm" is much broader and includes "enterprise".
  2. Scale. A firm can be called any business entity, an enterprise - only those organizations that have a significant amount of assets (real estate, finance, working capital, etc.).
  3. Type of ownership. As a rule, the term "enterprise" is used in relation to state organizations, the firm - to private ones.

Is there a difference between a company and a firm? Although the existence of differences may seem surprising, they are still present. Moreover, the difference is significant. The most important thing is to carefully study the definitions, and then understand what is hidden under the concepts.

Company and firm: definitions

The company is a name that comes from the French word compagnie, which can be translated as society. This organization involves the association of several legal entities or individuals who must jointly engage in various types of economic orientation for a guaranteed income. The range of services provided may include production, mediation, insurance and financial transactions.

All members of the association have certain rights and can influence the overall business activity. Regardless of which persons are representatives of the composition, a company can only be registered as a legal entity, which complies with the requirements of the legislation of the Russian Federation.

Firm is a word that was originally firma means signature. Subsequently, the meaning has changed. Currently, in Russia, a trade or industrial enterprise that offers certain services under a personal brand has begun to be called a firm. Currently, the word "firm" can be used in the form of two meanings:

  • The official name of the enterprise that conducts business activities. Obligatory registration is assumed, since only after it can compliance with the law be guaranteed. It should be noted that the subject acquires the status of a trademark.
  • An enterprise is created by one or more persons to conduct profitable activities. At the same time, even an individual can establish a company.

Company and firm: comparison

In order to understand the existing difference, it is necessary to operate with existing definitions. In this case, it is desirable to use the second definition of the company. With this approach, the difference between a company and a firm is laid down at the stage of registering an enterprise.

Thus, the company's activities should be at a more developed and decent level, because it is supposed to include several areas at the same time. For example, you can be the owner of a chain of restaurants or hotels, while at the same time being engaged in transportation, logging and other niches. The company can only engage in a certain type of activity for which it was originally created.

It should be noted that all persons who created the company have vote on the board, which allows you to vote for certain decisions and use the same rights to manage the enterprise. There is no clearly defined relationship between the parties in the firm.

Company and firm: distinctive features

  1. It is assumed that the company can be founded by only one person, which is reflected in all documents.
  2. The company must be a large entity and the firm a smaller one.
  3. The firm assumes a limitation regarding the areas of activity.

Firm and companies: general functions

The company and the firm must have a significant impact on the economic sphere in the state due to the fact that they are engaged in commercial, industrial activities, have certain corporate property and staff.
  1. In each case, it is assumed that there is a separate and independent economic unit, which must have legal registration with the tax service.
  2. Legal registration is assumed with the obligatory presence of a certain capital, charter, business plan. Based on all of the above components, entrepreneurial activity can develop.
  3. One person or several co-founders must independently make decisions for business development, taking into account the existing situation. At the same time, industrial and commercial independence is guaranteed.
  4. The main task of entrepreneurial activity is to minimize financial losses and guaranteed profit.

In each case, it is expected to perform certain tasks for the successful development of entrepreneurial activity:

  • Increasing the volume of sales of goods and attracting customers to offer services. At the same time, it is expected to increase the share in the existing market with the ability to control pricing and consumer demand.
  • Development of a team, which can consist not only of officially employed employees, but also of freelancers.
  • Guaranteed survival in a crisis economy, despite inflation and other adverse factors.
  • The basis for further promotion in the market. At the same time, you need to offer competitive products or services, gaining an ideal reputation.

Any company or firm can develop only on the basis of a few functions:

  1. A production function that assumes the possibility of offering goods or services.
  2. A commercial function based on the sale of finished products, marketing and advertising campaign.
  3. Financial function with the search for investments, obtaining loans, paying taxes, making a profit and solving other financial issues.
  4. A counting function that involves the solution of documentary issues.
  5. Administrative function with enterprise management.
  6. A legal function that ensures compliance with laws and business standards.

The main task is to gain a stable position in the market in the niche of interest.

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