The difference between a firm and an enterprise. What is the difference between an organization and an enterprise? d) production cooperatives

Interested in the question, what is the difference between an organization and an enterprise? Well, let's find out the difference between them together.

In general and in general

What is meant by organization? This is understood as a certain community created by people based on common interests and/or to achieve goals and having signs of management. Organizations can be created in a variety of areas: cultural, social, economic, political, international and so on. If they show signs legal entity, then subject state registration. But this is not necessary for all organizations. An enterprise is understood as a legal entity that produces products, sells them, provides services and performs various works. That is, in essence, it is an economic entity. This is the difference between an organization and an enterprise. But this is in general outline. Now let's talk about this in more detail.

What is the organization?

Based on the above, we can conclude that it is more broad concept and a structure that includes all forms and types of associations of people. Even criminal groups belong to them. This is the difference between an organization and an enterprise. While the latter are just one of their types. It should be noted that from his birth until his death, a person participates in various organizational associations. And in this case it is not the family that is meant, although it is one. So, a person appears in a medical organization such as a maternity hospital. Then he is transferred to a nursery, kindergarten, school, university. He not only studies, but also works and studies creative work, sports and other activities. Such social structures distribute responsibilities among themselves. If we talk about economic organizations, then their feature is the presence of a single leadership and independence. But if we talk about the overall picture, here we can pay the most attention to several of the most fundamental points.

Specifics of organizations

The fact is that they can be non/formal in nature. The peculiarity in the first case is that there are no registration documents; it is not registered with various authorities. That is, people just get together and act/discuss/create. Whereas an enterprise is necessarily a registered structure. Speaking generally about formal organizations, it should be noted that they are created in in a certain order, allowing you to effectively influence the people who are part of such a structure. There is also certain documentation regulating the activity. These may include statutes, rules, regulations and other behavioral norms. There must be leaders who manage the organization. They are appointed or elected. Formal organizations include the state, political parties, environmental protection societies, and enterprises. All this is ultimately aimed at satisfying various social needs, which, interestingly, do not have any signs of formality. Returning to informal organizations, I would like to note that they, as a rule, are small groups of people that are built on the principle of friendly relations. The important thing here is trust and a feeling of security and confidence.

Enterprise as a type of organization

Different associations may have different goals. One of them is entrepreneurial activity and obtaining maximum profit. To obtain it, it is created special organization. To distinguish it from other structural formations, it is called an enterprise. Its goal is to maximize profits generated by creating necessary for society goods and services. As a rule, it is economically independent and has all the necessary property and resources that are needed for its functioning. Businesses may be privately owned or various organizations. The latter may be other companies, the state, municipalities and similar entities. An enterprise is a structure that is limited by rigid boundaries.

So what's the difference?

Now let’s summarize and briefly outline how an organization differs from an enterprise. To do this, let's make a small list:

1. Enterprise - subject market economy, which is exclusively engaged in producing goods and providing services. Whereas an organization can engage in activities that are not related to the economic sector (culture, science, sports, politics, etc.).
2. An enterprise cannot have an informal status. All his activities are based on a certain legal basis. Whereas an organization may be an informal group that acts according to unwritten rules
3. The head of enterprises and organizations with the status of a legal entity holds his position on the basis of a certain legal act. But informal structures do not require documentation, and the choice of leader is carried out through the expression of the will of its members.

Examples of organizations

Single illustrations of what and how were given within the article. Let's take another walk to broaden our horizons. So, subjects economic activity can take different organizational forms(technical enterprises, limited liability companies) and operate in a strictly defined sector. Whereas associations are present wherever there are at least two people.

An enterprise (firm) as an independent economic entity in the market.

General characteristics of the enterprise (firm).

Enterprise– the main economic entity. The number of enterprises is growing. The largest number are in trade and catering, then industry, agriculture, etc.
As of 2006, number of enterprises: 4767.3 thousand.
For 2007 Number of enterprises: 4507 thousand.
For 2008 Number of enterprises: 4675 thousand.

Enterprise– an independent economic entity created in accordance with current legislation for the production of products, performance of work and provision of services in order to meet needs and make a profit.

After state registration it receives the status of a legal entity. As a legal entity, an enterprise acts on the basis of its charter, or constituent agreement, or the charter and memorandum of association. Example – a household acts on the basis of a contract.

The external side of the enterprise’s activities: partners, government agencies, suppliers, consumers, etc. The internal side of the activity: the workforce, owners and entrepreneurs.
Many enterprises are part of firms.

Firm- a legally independent business unit, which usually includes several enterprises. May be small company or concern.

Differences companies from the enterprise:
1. Enterprise – subject economic relations within the framework, as a rule, total capital(individual and collective). A firm is a subject of economic relations between various autonomous capitals (enterprises, firms, concerns). The firm is a corporation (in terms of capital concentration) with complex system financial dependence between its structural divisions.
2. The second feature of the company is its diversified structure. From the point of view of concentration of production, the company is similar to a diversified concern that unites enterprises from various sectors of the economy.

For successful activities a firm needs a certain degree of economic freedom, determined by its form of ownership.

Forms of ownership:
private
state
Private owners can be individual owners, a group of owners and tenants.

IN civil code admit:
private property
state property
municipal property
other forms of ownership (ownership of public, religious organizations, etc.), where 4.6% is private property. The degree of freedom is characterized by entrepreneurial activity.

In 2008, 3% of the total number of registered entrepreneurs operated on the basis of state ownership, in 2004 - 3.3%, 2006 - 3.4%, 2007 - 3.6%. Private ownership: 2004 – 75.8%, 2005 – 79.2%, 2006 – 80.5%, 2008 – 82.2% (total registered enterprises).
The actions of the organization are regulated by legislative bodies.

Organizational and legal forms.

Under organizational and legal The form of an enterprise is understood as a system of legal, economic and legal norms that determines the relationship between partners in the enterprise, as well as the enterprise with other business entities and government bodies.
Business partnerships And business companies – commercial organizations, authorized capital which is divided into shares (contributions) belonging to its founders (participants).
Participants general partnerships and general partners in limited partnerships can be individual entrepreneurs and/or commercial organizations.
Investors in limited partnerships and participants in business companies can be citizens and legal entities (individual entrepreneurs and organizations).

Legal entity– an organization that owns visible and separate economic property; responds with this property for its obligations. Can acquire on its own behalf and exercise property and personal non-property rights, bears responsibilities, and can be a plaintiff and defendant in court.
In addition to legal entities in entrepreneurial activity there may be individuals, but the risk of entrepreneurial activity increases, because are responsible for all property.

All legal entities of the Russian Federation are divided into commercial and non-commercial organizations.
Commercial organizations are those organizations for which making a profit is the main goal of their activities.
Non-profit organizations are those organizations for which making a profit is not the main purpose of their activities.

Classification legal entities of the Russian Federation:
1) Commercial
a) business partnerships:
-full
- on faith

Basic rights
1. Take part in managing the affairs of the company or partnership;
2. Take part in the distribution of profits;
3. Get acquainted with accounting or other documentation;
4. In the event of liquidation of the organization, receive part of the property remaining after settlements with creditors, or its value.
Responsibilities participants business partnership or society:
1. Make contributions in the manner, amounts, methods and within the time limits provided for by the constituent documents;
2. Do not disclose confidential information about the activities of the organization.

A business partnership is an association of persons;
A business company is an association of capital.

Full partnership a partnership is recognized, all participants of which are engaged in entrepreneurial activities on behalf of this partnership
A characteristic feature is the high degree and measure of property responsibility of its participant for the fulfillment of accepted obligations.
By labor code, all participants in a general partnership bear joint and several liability for its debts, answering with all their property.

Vicarious liability– if the property of the partnership is not enough to pay off debts, then the participants are liable for obligations with property personally belonging to them in proportion to their contributions.

Joint and several liability– if everyone answers, regardless of who is subject to the penalty.

The management of a general partnership is carried out by the general consent of all its participants, unless otherwise provided by the constituent agreement. Transfer of the contribution to other participants or third parties is permitted only with the consent of all other participants.

Profits and losses are distributed in proportion to contributions to the authorized or share capital.
Liquidation is carried out by decision of the court or the founders. If one participant remains in the partnership, then within six months he has the right to transform into a business company.
Partnership of Faith(limited command) combines not limited liability limited, since its members, along with general partners, are investors (limited partners), who are liable for obligations only with their share contribution to the partnership.
Limited partners do not participate in the management of the affairs of the partnership, do not have the right to act on behalf of the partnership except by agreement, and to challenge the decisions of the general partners. The role is limited to financial participation to generate revenue. The foundation agreement and liquidation are carried out similarly to a general partnership.

Advantages:
Possibility to accumulate founding funds in short terms;
Each general partner has the right to engage in business on behalf of the partnership on an equal basis with others;
The form is attractive to lenders;
To increase its capital, a limited partnership can attract funds from investors.
Flaws:
There must be a trusting relationship between general partners;
Each partner bears full and joint liability;
A partnership cannot be created by one participant.

b) business entities:
LLC / ODO
JSC:
-national enterprises
- open
-closed

Limited Liability Company (LLC)- this is a company whose participants are liable for the obligations assumed by such a company only to the extent of the value of the contributions made.
Established by one or more persons. The authorized capital cannot be less than 100 minimum wages and consists of contributions from its participants (minimum wage).
If established by one person, it operates on the basis of the charter or constituent agreement. LLCs do not require personal participation of their members in the affairs of their companies.

Advantages:
Possibility to accumulate cash in a short time;
A company can be created by one person;
Both legal entities and individuals (both commercial and non-commercial) can participate in the activity;
Members of the company bear limited liability for its obligations.

Flaws:
Not attractive to a lender;
The authorized capital cannot be less than the legally established minimum wage (RUB 3,330);
The number of LLC participants is less than 50 people.

Additional liability company (ALC) established by one or more persons. Unlike an LLC, the participants of such a company bear joint and several subsidiary liability for its obligations with their property in the same multiple of the value of their contribution.
If one of the participants goes bankrupt, his liability is distributed among the other participants.
It differs from a general partnership in that liability is limited, but the number of participants is unlimited.

Joint Stock Company (JSC) A commercial organization is recognized whose authorized capital is divided into a certain number of shares. Members of the company are not liable for obligations and bear the risk of losses only to the extent of the value of the shares they own.
JSCs can be created either by establishing a new legal entity or by reorganizing an existing one (corporatization).
Founders can be both individuals and legal entities, as well as local authorities public administration. A JSC may be created by one person or may consist of one person in case of acquisition of all shares of the JSC.
The founders of a joint-stock company enter into an agreement among themselves that determines the procedure for their joint activities to create a company, as well as the size of the constituent capital, the categories of shares issued and the procedure for its placement.

JSCs can be open or closed:
Participants in an OJSC may transfer or sell their shares without the consent of other shareholders.
An open joint-stock company can use two options for placing shares: a closed subscription in a limited circle of people without advertising (in a closed joint-stock company) and an open subscription with advertising company, if the amount of the authorized capital is more than 100,000 minimum wage.
Open subscription – among an unlimited circle of people with advertising campaign provided that the size of the authorized capital exceeds 100,000 minimum wages.
Closed subscription - without an advertising campaign among a limited circle of people.
The JSC is obliged to publish annually an annual report and a balance sheet of profits and losses.

IN CJSC shares are distributed only among the founders or other pre-limited circle of persons.
CJSC shareholders have pre-emptive right purchasing shares sold by other shareholders.
CJSC publishes reports only in exceptional cases provided for by law.
The number of participants in a closed joint stock company is no more than 50 people, in an open joint stock company it is unlimited.

JSC management structure:
Meeting of shareholders, council, supervisory and administrative board of directors, executive bodies of the company (general directors).

Supreme body – general meeting shareholders. The meeting is valid if more than 50% of shareholders are present (changes in the authorized capital, executive management bodies, distribution of profits and losses, etc.)
JSCs can place ordinary and several types of preferred shares.
JSC voting is carried out according to the principle: 1 share = 1 vote.
The joint-stock company places ordinary or several types of preferred shares.
When establishing a company, 50% of the shares must be placed within 3 months from the date of state registration, the rest - within a year.
A joint stock company can have shares and bonds.

Security- this is a monetary document certifying property rights or loan relations, the implementation or transfer of which is possible only upon presentation. Securities may exist in the form of separate documents or
account entries. In the latter case, the owner of the security is issued a certificate of ownership.

Promotion– a security certifying the right of its owner to receive income in the form of a dividend, to participate in a general meeting with voting rights (ordinary shares) and to receive part of the property after the liquidation of the company.

Payment of dividends is not the responsibility of the JSC.
A JSC does not have the right to pay dividends in the following cases:
Until full payment of the authorized capital
Before repurchase of all shares to be repurchased
If on the day such a decision is made the JSC meets the signs of bankruptcy or these signs appear at the JSC as a result of the payment of dividends
If on the day such a decision is made the cost net assets society less than the amount its authorized capital, reserve fund and excess over the nominal value determined by the charter salvage value placed preferred shares.

Dividends can be paid no more than once a year.

Stock are being assessed at their cost:
The nominal value of a share is the value that is established when the share is issued.
Book value is the value calculated by dividing the value of a company's assets by the number of shares issued and outstanding.
Market value is the cost of shares on a stock exchange or in over-the-counter circulation, determined by supply and demand. The market value can be either higher or lower than the nominal value of the share.
By the nature of the order shares are divided into:
registered shares (high par value);
bearer shares (low par value).
By the nature of the income generated shares can be:
Ordinary shares
Preference shares
Share of preferred shares in total volume The authorized capital of the joint stock company should not exceed 25%.
A joint stock company also has the right to issue bonds in an amount not exceeding the amount of the authorized capital or the amount of security provided to the company for these purposes by third parties, after full payment of the authorized capital.

Bond– a security issued by a joint-stock company as a debt obligation. Unlike stocks, bonds have a limited maturity. The owner of bonds is not a participant in the company, but only its creditor. Periodically, the bond owner receives interest income. At the end of the bond's circulation period, the face value is returned to its owner (in other words, the bond is redeemed).
The JSC has the right to issue bonds in an amount not exceeding the amount of the authorized capital, or the amount of security provided to the company for these purposes by third parties after full payment of the authorized capital.
In the absence of collateral, the issue of bonds is allowed no earlier than the third year of the existence of the joint-stock company and its two annual balance sheets must be approved by this time.

Bondholders have a preferential right to distributed profits and assets of the company upon its liquidation.
Depending on the type of security, bonds can be:
mortgaged property;
against securities;
mortgage-free.
Bonds may be classified as follows:
convertible - the holder can exchange them at a pre-agreed price for ordinary shares;
revocable - the issuer can withdraw (repurchase) them early at the redemption price with payment of a premium;
with “narrowing” and “expansion” - the holder can present them for payment earlier or later than the maturity date, this decision is made by the holder within a predetermined time frame;
with a redemption fund - a redemption fund is created (percentage of profit), from which part of the bonds is redeemed by calling them at an agreed price;
with a floating interest rate - the interest rate is tied to the bank discount rate; used during periods of sharp fluctuations in the bank discount rate.
In addition, a joint stock company can issue share certificates - securities that are evidence of ownership of a person named in it a certain number of shares.

PEOPLE'S ENTERPRISES
From October 1, 1998, in accordance with Federal law"About the features legal status JSC of Workers (People's Enterprises)" No. 111-15, another type of JSC was introduced into economic practice - people's enterprises.

Peculiarities:
An enterprise of this kind issues only ordinary shares, 75% of which (not less than this figure) must belong to shareholders working at this enterprise.
The number of employees who are not shareholders should not exceed 10%.
Each shareholder (member labor collective) may own a block of shares of no more than 5% of the authorized capital.
The amount of the authorized capital of such an enterprise is not less than 1000 times the minimum wage.
Decision-making principle: one shareholder – one vote.
The executive body of the people's enterprise is general manager, elected by the general meeting.
Average headcount employees - no less than 51 people, number of shareholders - no more than 5,000.

Meaning national economy – so that workers are interested in production, so as not to alienate them from production, and soften the results of privatization.

V) unitary enterprises:
-state
-municipal

Unitary enterprises- These are commercial organizations that are not vested with the right of ownership of the property assigned to them.
The property of such an enterprise is indivisible and cannot be distributed among deposits (shares), including among employees.
State and municipal enterprises operate as unitary enterprises.
The property is in municipal or state ownership and belongs to unitary enterprises on the right of economic management or on the right of operational management.

Right of economic management- this is the right of a state or municipal enterprise to own, use and dispose of the owner’s property in accordance with the law or other regulations. This enterprise are liable with property for their debts and are not liable for the debts of the state (owner). The owner reserves the right to reorganize and liquidate the enterprise, controls the safety of property owned by the enterprise, and, in addition, has the right to receive a portion of the profit from the use of the property. The company has no right to dispose real estate without the owner's consent. The enterprise disposes of movable property independently, as well as part of the profit remaining after settlements with the owner. Thus, under the right of economic management, an enterprise has the right to dispose of movable property and part of the profit independently, but does not have the right to dispose of real estate without the consent of the owner.

Unitary enterprise with the right of operational management:
Enterprises that operate under the right of operational management are state-owned enterprises. For state-owned enterprises, a more stringent regime for the disposal of its property has been established than for state and municipal enterprises. A state-owned enterprise can dispose of property only with the consent of the owner - both movable and immovable. Without the consent of the owner, such an enterprise sells only manufactured products. Enterprises are not entitled to a share of profits. The right of operational management is much narrower than the right of economic management. The governing body is the manager, who is appointed by the owner.

Main founding document – charter.
In 2002, a law was introduced - unitary enterprises cannot create another unitary (subsidiary) enterprise as a legal entity and transfer part of the property to it. If such an enterprise exists, within 6 months it was obliged to be attached to the parent enterprise (liquidated). Done to avoid alienation of state property.
Amount of authorized capital state enterprise– no less than 5000 minimum wages, municipal – no less than 1000 minimum wages as of the date of state registration of the enterprise. State-owned enterprises do not have authorized capital.
State-owned enterprises– enterprises with the right of operational management.

Associative forms entrepreneurial activity:
concern, consortium, syndicate, corporation, holding.

Consortium- temporary association of enterprises, banks, firms, scientific and design organizations, government agencies For joint holding major events in the field of production, finance, capital construction, ecology, science to solve specific problems over a certain period of time. They unite enterprises of any form of ownership.
Consortium participants retain economic independence and can simultaneously be members of other associations, joint ventures, and consortia.
After completing the tasks, the consortium ceases to exist.
Consortia also include temporary intersectoral investment, scientific, technical and other complexes created for the implementation of scientific, technical, investment, environmental and other programs.
One of the associative forms of collective entrepreneurship is syndicate. This form entrepreneurship is associated mainly with the sale of products and is distributed mainly in the extractive industries, agriculture and forestry.
As a rule, a syndicate organizes a single sales service (office), to which members of the syndicate must deliver products intended for joint sale at a pre-agreed price and quota. Competition within the syndicate is allowed.
The main goal of the syndicate is to expand and maintain sales markets, regulate production volumes within the syndicate and prices on external markets for products.
Industrial units is a group of enterprises and organizations that are located in adjacent territories and jointly use production and social infrastructure, natural and other resources, create common production facilities of intersectoral and local territorial significance, while maintaining their independence.
In industrial hubs, conditions are created for the development of micro-territorial integration, cooperation, specialization of production, more complete use of unique equipment, production areas and capacities for processing secondary resources, organization of inter-industry production, and service facilities.

Holding company- is a company or organization (corporation) that owns controlling blocks of shares or shares in shares of other companies (enterprises).
A controlling stake is the main form of participation in the capital of an enterprise, providing the unconditional right to make or reject certain decisions at a general meeting of shareholders, shareholders and management bodies.
The mechanism of a controlling stake gives the holding company voting rights, thanks to which it is able to pursue a unified policy and exercise unified control over the interests of large conglomerates (corporations, concerns, trusts) or accelerate the process of diversification. (Diversification is the simultaneous development of many unrelated types of production,
expansion of the range of manufactured products.)
Thus, holding company- the top of a pyramid made up of subsidiaries (their controlling stakes are part of the assets of the holding company).
There are pure and mixed holdings.
Pure (financial) holding – when a company receives income through a system of participation in the share capital of other companies. Typically, such a holding company is headed by a large bank. He does not participate in the activities of the holding, but only receives income.
A mixed holding involves the parent company carrying out entrepreneurial activities. As a rule, such a holding is headed by a large production association.

d) production cooperatives

Production cooperative(artel) is a voluntary association of citizens on the basis of membership to conduct joint production or other economic activities based on their personal labor or other participation and the association of property shares by its members.

The founding document of the cooperative is charter.
The number of members should not be less than 5 people. Participation by legal entities is allowed.
A production cooperative may use hired labor, but the number of hired workers is limited (no more than 30% of the cooperative members).
In addition, the participation of persons who have paid a share contribution, but do not take part in the activities of the cooperative, is possible. Such persons should be no more than 25% of the total number of persons participating in labor activities.

Sources formation of the property of the cooperative are:
Contributions of its members (both monetary and material forms);
Products of the cooperative and income received from its sale.

The supreme governing body is the general meeting. Executive bodies represented by the board of the cooperative.
Management principle: each member of the cooperative has a vote, regardless of the size of his property contribution contributed to the authorized capital.
The individual earnings of cooperative members are determined by their labor contribution to the activities of the cooperative and the amount of income that goes to pay for labor.
Production cooperatives are not only an association of capital, but also of labor.

Advantages:
Profit is distributed in proportion to the labor contribution, which creates a conscientious attitude towards work;
The legislation does not limit the number of members of the cooperative (except for the lower limit - 5 people);
Equality of rights. All members of the cooperative have equal rights, i.e. Regardless of the size of the contribution, each member of the cooperative has the right to head.

Flaws:
The number of members of a cooperative cannot be less than five, limiting the possibility of creation;
Each member of the cooperative has limited liability for the debts of the cooperative;
Cooperatives have become widespread in agriculture, in the service sector, in mining, in research and development.

2) Non-profit
— charities
- parties
— religious organizations (associations)
— consumer cooperatives
— association of legal entities (associations, unions, non-profit partnerships)

Types of enterprises.

Enterprises can be grouped according to various criteria, in particular:
1. by size:
Small;
Average;
Large ones.

The most important criterion is the number of personnel. Small - up to 100 people inclusive (up to 15 people - microenterprises), medium - from 101 to 250 inclusive, large - 251 and above.

For legal entities, the total share of participation in their authorized capital of the Russian Federation, constituent entities of the Russian Federation, public and religious organizations, charitable and other foundations should not exceed 25%; the share owned by one or more legal entities that are not small and medium-sized businesses does not exceed 25%
(Since 2010) revenue from the sale of goods (works, services) excluding VAT or the book value of assets (residual value of fixed assets and intangible assets) for the previous calendar year should not exceed the limits established by the Government of the Russian Federation.

2. by degree of specialization:
Highly specialized;
Universal;
Combined.

Highly specialized enterprises include those enterprises that produce a limited range of mass or large-scale products.
Universal enterprises include enterprises that produce products wide range and general consumption. Most often found in industry and agriculture.
Combined (most often chemical, textile, metallurgical, industrial production): only one type of raw material or finished products sequentially or in parallel at the same enterprise turn into another, and then into a third.

3. by the nature of the products:
Producing means of production;
Producing consumer goods.

4. by type of productive processes:
Mass production;
Serial production;
Individual production.

Mass production is based on the flow principle of organizing production, characterized by division production process for individual relatively short operations performed on production lines consisting of specially equipped sequentially located workstations.
Serial production involves the release of products in series, separate batches, in significant, but not mass quantities.
Individual production is characterized by the release of products that are varied and not supplied to the nomenclature, in small batches.

An organization is recognized as a legal entity when it has the following characteristics:
- has separate property in ownership, economic management or operational management;
- responds with this property for its obligations;
- can acquire on its own behalf and exercise property and personal non-property rights;
- can be a plaintiff and defendant in court;
- bears responsibilities;
- must have an independent balance or system.

An individual entrepreneur (IP) carries out entrepreneurial activities without forming a legal entity.

6. by production sector:
Industrial/agricultural/construction;
Services, salary;
Mediation, innovation;
Renting out property for use.

Organization, company and firm are words that are used as synonyms in everyday speech. Is this really true? Is there a difference between a company and a firm?

Defining the concepts

A company (from Latin Compania - group) is a kind of association (a kind of union) legal organizations or citizens on a voluntary basis. What do they have in common? The single task is to make a profit as a result of a certain activity. Examples: manufacturing and production, financial transactions, supply, provision of services, and so on. Each person included in this association plays the role of a “brick” that makes up the general building of the company.

An important point is the mandatory state registration, which is required regardless of the composition of the company. Such an organization is engaged in not one, but several activities. In the same association there may be specialists in finance, insurance and production. Profit from a common cause is what unites them.

Firm (from Latin - signature) has two meanings in Russian:

1. the official name of the association, which is subject to state registration in the register. In essence, it is a trademark;
2. one person or an organization of several persons to engage in a specific activity, the purpose of which is to make a profit.

The second use of the term is key. Now that the definitions are known, we can indicate the similarities between a company and a firm:

1. independence. State registration requirement and the presence of separate property;
2. carrying out certain economic activities;.
3. making a profit.

The most interesting question is what is the difference between these associations. The answer can be presented in the following table:

An equally important difference: the company's activities cover the firm. If the latter is engaged in one thing, then the company can essentially be a universal association.

Important: all these differences are factual. At the legislative level, one association is no different from another.

Enterprise in Russian means approximately similar phenomena. In itself, this word means an organizational and legal association that performs certain work. To some extent, an enterprise is “narrower” than a firm, since the latter includes the former. The key difference is the following: the enterprise is used in relation to state associations, and the firm and company - to private. Organization is another word used in the same sense as company and firm. An illustrative example would be a comparison of management companies and homeowners' associations.

Which is preferable?

First, let's decipher the abbreviations. An HOA is a homeowners' partnership, and a management company is a management company.

• Partnership is a union of residential property owners. Occurs after state registration and tax registration. Purpose of origin: effective management of property in common ownership.
• Managing organization is a legal entity created for the purpose of effective management residential real estate (houses). Close cooperation with organizations supplying gas, electricity, water, etc. - a feature of the Criminal Code. Acts on the basis of the charter and law.

Many people wonder what the differences and similarities are between an HOA and a management company, and what is better than an HOA or a management company. The answer to the first question will look like this:

• Homeowners' associations and management companies are organizations, that is, associations created for a specific purpose;
• HOA, unlike management company, is non-profit organization. In other words, the partnership does not prioritize making a profit.

The key difference between a management company and a partnership is the number of objects under control. The management company controls dozens of houses, and the HOA controls one or more houses. In addition, the order of decision-making also differs. In a partnership, everything is decided by the meeting of owners, but in a management company, decisions are entrusted to certain persons.

Interesting: statistical data directly indicate the great popularity of management companies, in contrast to HOAs. Approximately 80% of houses enter into agreements with the management company.

The advantages of the management company are the following:

• expenses correspond to special plans;
• repairs (routine and major) and cleaning (for example, garbage removal) are carried out by professional contractors;
• the debt is covered by the reserve;
• if conflicts arise with service providers, then the management company in this issue more competent.

Among the disadvantages, the following points stand out:

• ignoring the opinions of residents. Since all decisions are made by the organization, as a rule, residents are simply “spit on”;
• lack of concern for residents' funds. It's easy to use other people's money.

At the same time, the advantages of an HOA are:

• the disposal of common property is carried out in agreement with all residents attending the general meeting;
• control over utilities. If the management company can “cheat” in this matter, then it is easier to monitor the HOA (however, not everyone shares this position);
• saving.

Disadvantages of partnership.

Is there a difference between a company and a firm? Although the differences may seem surprising, they are still present. Moreover, the difference turns out to be 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 combination of several legal or individuals who should work together various types economic orientation for guaranteed income. The range of services provided may include production, intermediation, 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, the 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 meant signature. Subsequently the meaning changed. Currently in Russia a company has begun to be called a trading or industrial enterprise, which offers certain services under a personal brand. Currently, the word “company” can be used in two meanings:

• The official name of the company that operates economic activity. Supposed mandatory registration, 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. Moreover, even an individual can found a company.

Company and firm: comparison

In order to understand the existing difference, you need to operate existing definitions. In this case, it is advisable to use the second definition of a company. With this approach, the difference between a company and a firm is laid down at the stage of enterprise registration.

Thus, the company’s activities should be at a more developed and worthy level, because it is assumed that it is possible 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 involved in transportation, logging and other niches. A 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 voice on the board, allowing you to vote for certain decisions and use the same rights to manage the enterprise. There are no clearly defined relationships between the parties in the company.

Company and firm: distinctive features

1. It is assumed that a 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 must be a smaller entity.
3. The company assumes restrictions regarding areas of activity.

Firm and companies: general functions

The company and the firm must have a significant influence on economic sphere in the state due to the fact that they are engaged in commercial, production activities, have certain corporate and collective property.

1. In each case, the existence of a separate and independent economic entity is assumed, which must be legally registered with the tax service.
2. Supposed legal registration with the obligatory presence of a certain capital, charter, and business plan. Based on all of the above components, entrepreneurial activity can develop.
3. One person or several co-founders must independently make decisions to develop the business, taking into account current situation. At the same time, production and commercial independence is guaranteed.
4. The main task of entrepreneurial activity is to minimize financial losses and guarantee profit.

In each case, certain tasks are expected to be performed to successful development entrepreneurial activity:

• Increasing the volume of sales of goods and attracting customers to offer services. At the same time, it is expected that the share will increase by 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 unfavorable factors.
• The basis for further promotion in the market. At the same time, you need to offer competitive goods or services, gaining an ideal reputation.

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

1. A production function that involves the possibility of supplying goods or services.
2. A commercial function based on sales of finished products, marketing and advertising campaigns.
3. Financial function with searching for investments, obtaining loans, paying taxes, making profits and solving other financial issues.
4. A counting function that involves resolving documentary issues.
5. Administrative function with enterprise management.
6. Legal function to ensure compliance with laws and business standards.

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