The difference between an organization and an enterprise. Firms and enterprises. What is the organization

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

Definition

Firm - a commercial company carrying out business activities on a legal basis. A prerequisite for such work is official registration, the presence of constituent documents, assets, reporting. A firm can mean any legal form, be it LLC, OJSC or ODO.

Company - an organizational and legal unit carrying 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, means of production, accounts receivable and payable, financial assets and exclusive rights.

Comparison

Thus, these concepts are related by their essence: development, profit making, commercial activities. Otherwise, the differences are purely practical, since there are no legal definitions of a firm and an enterprise. Rather, we are talking about well-established traditions adopted in business. So, the scope of the concept of a firm is extremely wide: it includes both legal entities and individual entrepreneurs. It includes, among other things, the category enterprise.

In this case, a firm is called a property complex, regardless of scale. It can be either a small retail outlet or a group of companies united into 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 state-owned objects, but at the moment this practice has exhausted itself in connection with the active privatization of business entities.

Conclusions site

The scope of concepts. The category “firm” is much broader and includes “enterprise”.
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.).
Type of ownership. As a rule, the term "enterprise" is used in relation to state organizations, a firm - to private ones.

Enterprise (firm) as an independent economic entity of the market.

General characteristics of the enterprise (firm).

Company - the main business entity. The number of enterprises is growing. The largest number is in trade and public catering, followed by industry, agriculture, etc.
2006 Number of enterprises: 4767.3 thousand
2007 Number of enterprises: 4507 thousand
For 2008 Number of enterprises: 4675 thousand

Company - an independent business entity created in accordance with the 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 the charter, or the articles of association, or the articles of association and articles of association. Example - a household is acting under a contract.

The external side of the enterprise: partners, government agencies, suppliers, consumers, etc. The inner side of the activity: labor collective, owners and entrepreneurs.
Many enterprises are part of firms.

Firm - a legally independent business unit, which, as a rule, includes several enterprises. Maybe a small company or a concern.

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

To be successful, a firm needs a certain degree of economic freedom, determined by the form of ownership.

Forms of ownership:
private
state
Private owners can be sole proprietors, group of owners and tenants.

The Civil Code recognizes:
private property
state property
municipal property
other forms of ownership (property 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 property, in 2004 - 3.3%, 2006 - 3.4%, 2007 - 3.6%. Private property: 2004 - 75.8%, 2005 - 79.2%, 2006 - 80.5%, 2008 - 82.2% (all enterprises are registered).
The organization's actions are regulated by the legislature.

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 an enterprise, as well as an enterprise with other business entities and government bodies.
Business partnerships and business companies - commercial organizations, the authorized capital of 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.
Contributors in limited partnerships and participants in business companies can be citizens and legal entities (individual entrepreneurs and organizations).

Entity - an organization that owns visible and separate economic property; is responsible with this property for its obligations. Can acquire on its own behalf and exercise property and personal non-property rights, bears obligations, can be a plaintiff and a defendant in court.
In addition to legal entities, there may be individuals in entrepreneurial activity, but the risk of entrepreneurial activity increases, because 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 profit is the main purpose of the activity.
Non-profit organizations are those organizations for which profit is not the main purpose of the activity.

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

Basic rights
1. Take part in the management of the affairs of the company or partnership;
2. Participate 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.
Duties participants in a business partnership or company:
1. Make contributions in the manner, size, methods and within the time frame provided for by the constituent documents;
2. Do not disclose confidential information about the activities of the organization.

Business partnership - an association of persons;
An economic society is a pooling 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 a high degree and measure of property liability of its participant for the fulfillment of the obligations assumed.
According to the Labor Code, all participants in a full partnership bear joint and several liability for its debts, answering with all their property.

Subsidial liability - if the property of the partnership is not enough to pay off debts, then the participants are liable for the obligations personally owned by them in proportion to their contributions.

Joint responsibility - if everyone answers, regardless of who the penalty is due.

A general partnership is managed by the general agreement of all its participants, unless otherwise provided by the memorandum of association. Transfer of the contribution to other participants or third parties is allowed only with the consent of all other participants.

Profits and losses are distributed in proportion to contributions to the authorized or joint capital.
Liquidation is carried out by decision of the court or founders. If only one participant remains in the partnership, then within six months he has the right to transform into a business company.
Fellowship of faith (limited liability) combines unlimited liability with limited liability, since its members, along with general partners, are contributors (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 partnership, do not have the right to act on behalf of the partnership other than by agreement, and to challenge the decisions of the general partners. Role is limited to financial participation to generate income. The memorandum of association and liquidation are carried out similarly to a general partnership.

Benefits:
Possibility to accumulate foundation funds in a short time;
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 raise funds from investors.
Disadvantages:
There must be a relationship of trust between general partners;
Each comrade bears full and joint responsibility;
A partnership cannot be created by one member.

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

Limited Liability Company (LLC) - a company whose members are responsible for the obligations assumed by such a company, only within the value of the contributions made.
It is established by one or more persons. The authorized capital cannot be less than 100 minimum wages and consists of the contributions of its participants (the minimum wage).
If it is established by one person, it functions on the basis of the charter or articles of association. LLC does not require personal participation of its members in the affairs of their companies.

Benefits:
The ability to accumulate funds in a short time;
A society can be created by one person;
Both legal entities and individuals (both commercial and non-commercial) can participate in the activity;
Society members have limited liability for its obligations.

Disadvantages:
Not attractive to the lender;
The authorized capital cannot be less than the statutory minimum wage (3330 rubles);
The number of LLC members is less than 50 people.

Additional Liability Company (ALC) is established by one or more persons. Unlike an LLC, the members of such a company are jointly and severally subsidized for its obligations with their property in the same multiple of the value of their contribution for all.
In case of bankruptcy of one of the participants, his responsibility is distributed among the other participants.
It differs from a full partnership in that the liability is limited, but the number of participants is unlimited.

Joint Stock Company (JSC) a commercial organization is recognized, the authorized capital of which is divided into a certain number of shares. The members of the company are not liable for obligations and bear the risk of losses only within the value of their shares.
JSCs can be created both by establishing a new legal entity, and by reorganizing an existing one (corporatization).
By the founders there can be both individuals and legal entities, as well as local government bodies. A JSC can be created by one person or it can consist of one person in the case of purchasing all the shares of the JSC.
The founders of a joint-stock company conclude an agreement among themselves that determines the procedure for their joint activities to create a company, as well as the size of the compound capital, the category of issued shares and the procedure for its placement.

JSCs can be open and closed:
OJSC members can transfer or sell their shares without the consent of other shareholders.
An OJSC can use two options for placing shares: a private subscription in a limited circle of persons without advertising (in a closed joint stock company) and an open subscription with an advertising campaign, if the amount of the authorized capital is more than 100,000 minimum wages.
Public subscription - among an unlimited number of persons with an advertising campaign, provided that the amount of the authorized capital exceeds 100,000 minimum wages.
Private subscription - no advertising campaign among a limited number of people.
JSC is obliged to publish an annual report, a balance sheet on profits and losses annually.

At JSCshares are distributed only among the founders or other previously limited circle of persons.
The shareholders of the CJSC have a pre-emptive right to purchase shares sold by other shareholders.
CJSC publishes statements only in the exceptional case provided by law.
The number of participants in a CJSC is no more than 50 people, in an OJSC - 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 of Shareholders. A meeting is competent if more than 50% of shareholders are present at it (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 \u003d 1 vote.
AO 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.
There can be stocks and bonds in the JSC.

Valuable paper is a monetary document certifying property rights or loan relations, the implementation or transfer of which is possible only upon its presentation. Securities can exist in the form of stand-alone documents or
account entries. In the latter case, the owner of the security is issued a certificate of ownership.

Stock - a security certifying the right of its owner to receive income in the form of a dividend, to participate in a general meeting with the right to vote (ordinary share) and to receive part of the property after the liquidation of the company.

The payment of dividends is not the responsibility of the JSC.
JSC is not entitled to pay dividends in the following cases:
Until full payment of the authorized capital
Before redeeming all shares to be redeemed
If on the day of making such a decision, the JSC meets the signs of bankruptcy or these signs appear in the JSC as a result of the payment of dividends
If, on the day of such a decision, the value of the company's net assets is less than the amount of its authorized capital, reserve fund and the excess over the par value of the liquidation value of the placed preferred shares determined by the charter.

Dividends can be paid no more than once a year.

Promotions are evaluated at their cost:
The par value of a share is the value that is established when the share is issued.
Book value is the quotient of the value of a company's assets divided by the number of shares issued and distributed.
Market value is the value of shares on the exchange or in the over-the-counter turnover, determined by supply and demand. The market value can be either higher or lower than the par value of a 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 promotions can be:
Ordinary shares
Preference shares
The share of preferred shares in the total volume of the authorized capital of a joint stock company must not exceed 25%.
The joint-stock company is also entitled to issue bonds for an amount not exceeding the amount of the authorized capital or the amount of security provided to the company for this purpose by third parties, after full payment of the authorized capital.

Bond - a security issued by the JSC as a promissory note. Unlike stocks, bonds have a limited maturity. The owner of the bonds is not a member of the company, but only its creditor. Periodically, the bondholder 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).
A JSC has the right to issue bonds for an amount not exceeding the amount of the authorized capital, or the amount of security provided to the company for this purpose 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 approved by that time.

Bond holders have a preemptive right to the distribution of profits and assets of the company upon its liquidation.
By type of collateral, bonds can be:
mortgaged property;
under the mortgage of securities;
mortal.
Bonds can be classified as follows:
convertible - the holder can exchange them at a pre-agreed price for ordinary shares;
revocable - the issuer can early recall (redeem) them at the redemption price with payment of a premium;
with "narrowing" and "expanding" - 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 (percentage of profit) is created, from which part of the bonds is redeemed by recalling them at an agreed price;
with a floating interest rate - the interest rate is linked to the discount bank rate; used during periods of sharp fluctuations in the discount bank rate.
In addition, a joint-stock company can issue certificates for shares - securities, which are evidence of the ownership of a named person in a certain number of shares.

FOLK ENTERPRISES
From October 1, 1998, in accordance with the Federal Law "On the Peculiarities of the Legal Status of AO of Employees (People's Enterprises)" No. 111-15, another type of AO - People's Enterprises - was introduced into economic practice.

Features:
An enterprise of this kind issues only ordinary shares, 75% of which (at least this figure) must be owned by shareholders working in this enterprise.
The number of employees who are not shareholders should not exceed 10%.
Each shareholder (member of the labor collective) can 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 the general director elected by the general meeting.
The average number of employees is at least 51 people, the number of shareholders is not more than 5,000.

The meaning of the national economy - so that workers are interested in production, so as not to alienate them from production, to soften the results of privatization.

c) unitary enterprises:
-state
- municipal

Unitary enterprises - these are commercial organizations not endowed with the ownership right to the property assigned to them.
The property of such an enterprise is indivisible and cannot be distributed among contributions (shares), including among employees.
State and municipal enterprises function 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.

Economic management rightIs the right of a state or municipal enterprise to own, use and dispose of the property of the owner in accordance with the law or other regulations. This enterprise is responsible for its debts with property and is not responsible for the debts of the state (owner). The owner reserves the right to reorganize and liquidate the enterprise, controls the safety of the property belonging to the enterprise, in addition, has the right to receive part of the profit from the use of the property. The company does not have the right to dispose of real estate without the consent of the owner. The enterprise disposes of movable property independently, as well as part of the profit remaining after settlements with the owner. Thus, on the basis of the right of economic management, an enterprise has the right to dispose of movable property and part of its profits independently, but does not have the right to dispose of real estate without the consent of the owner.

Unitary enterprise on the basis of operational management:
Enterprises that operate on the basis of operational management are state-owned enterprises. For state-owned enterprises, a stricter regime has been established for the disposal of their property than for state and municipal enterprises. A state enterprise may 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. Businesses are not entitled to a share of the profits. The right of operational management is much narrower than the right of economic management. The governing body is the head who is appointed by the owner.

The main constituent document is 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 attach it to the parent enterprise (liquidate). Made to avoid alienation of state property.
The size of the authorized capital of a state enterprise is at least 5000 minimum wages, of a municipal one - at least 1000 minimum wages as of the date of state registration of the enterprise. The authorized capital of state-owned enterprises is not formed.
State enterprises - enterprises on the basis of operational management.

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

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

holding company - is a company or organization (corporation) that owns a controlling interest or shares in shares of other companies (enterprises).
A controlling stake is the main form of participation in the capital of an enterprise, which provides the unconditional right to make or reject certain decisions at a general meeting of shareholders, shareholders and governing bodies.
The mechanism of a controlling stake gives the holding company the right to vote, thanks to which it gets the opportunity to pursue a single policy and exercise uniform control over the observance of the interests of large conglomerates (corporations, concerns, trusts) or to accelerate the process of diversification. (Diversification is the simultaneous development of many types of production that are not related to each other,
expanding the range of manufactured products.)
Thus, the holding company is the top of the pyramid made up of subsidiaries (their controlling stakes are part of the holding company's assets).
There are pure and mixed holdings.
Net (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.
The mixed holding involves the implementation of entrepreneurial activities by the parent company. As a rule, such a holding is headed by a large production association.

d) production cooperatives

Production cooperative (artel) - 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 consolidation of property shares by its members.

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

Sources formation of the property of the cooperative are:
Contributions of its members (both in cash and in material forms);
Cooperative products and income received from their sale.

The supreme governing body is the general meeting. The executive bodies are 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 or to the authorized capital.
Individual earnings of members of the cooperative 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 a pooling of capital, but also of labor.

Benefits:
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 head.

Disadvantages:
The number of members of the cooperative cannot be less than five, limiting the possibility of creating;
Each member of the cooperative has limited liability for the cooperative's debts;
Cooperatives have become widespread in agriculture, in the service sector, in the extraction of minerals, in scientific research.

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

Types of enterprises.

Businesses can be grouped according to various criteria, in particular:
1.Size:
Small;
Average;
Large.

The most important criterion is the number of employees. Small - up to 100 people inclusive (up to 15 people - micro-enterprises), medium - from 101 to 250 inclusive, large - 251 and more.

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) proceeds 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 must not exceed the limits established by the Government of the Russian Federation.

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

To highly specialized are those enterprises that manufacture a limited range of products for mass or large-scale production.
Enterprises producing a wide range of products and consumer goods are classified as universal ones. Most often found in industry and agriculture.
Combined (most often - chemical, textile, metallurgical, industrial production): only one type of raw material or finished product, sequentially or in parallel at the same enterprise, is transformed into another, and then into a third.

3. by the nature of the products:
Issuing means of production;
Producers of commodities.

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

Mass production is based on the flow principle of the organization of production, characterized by the division of the production process into separate relatively short operations performed on production lines consisting of specially equipped sequentially located workstations.
Serial production involves the release of products in series, in separate batches, in significant, but not mass quantities.
Individual production is characterized by the release of products, 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 a separate property in the ownership, economic management or operational management;
- is responsible 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 a defendant in court;
- bears responsibilities;
- must have an independent balance or system.

An individual entrepreneur (IE) carries out entrepreneurial activity without forming a legal entity.

6.in the field of production:
Industrial / agricultural / construction;
Services, salary;
Mediation, innovation;
Lease of property.

Associations of people allow them to achieve their goals faster and more efficiently, especially when it comes to business or social projects. Companies and organizations are various forms of interaction between citizens and legal entities, which at first glance are synonymous. However, in fact, there are differences between them that affect the understanding of these categories.

What is a company and an organization?

Company Is a legal entity that conducts business and is registered in accordance with the established procedure. It corresponds to a certain legal form: LLC, OJSC, ODO and others. A company can be public or private, or mixed.

Organization Is an association of individuals or legal entities to achieve common goals. The number of participants is 2 or more, and the activity can be commercial or non-commercial. The organization is engaged in production, implements a social project, is a consumer union, etc.

Comparison of company and organization

What is the difference between a company and an organization? Based on the data obtained, the company is always created to generate profit, and the organization may be non-profit in nature. This is determined not only by the status of the association, but also by its organizational and legal form.

Companies are registered as LLC, ODO, CJSC, and organizations can operate informally. In some countries of the world, however, such activity is illegal.

The company always has a management that makes decisions and determines the development of the association.

An organization can have a qualitatively different structure, including a network type, where there is no formal administration, and all participants are endowed with equal rights.

The difference between a company and an organization is as follows:

The purpose of the activity. A company is always a commercial enterprise, while an organization may be non-profit.
Registration and formal status. A public organization can conduct its activities in a free manner. Registration is required for the company's commercial activities.
Composition. A company is always represented by one legal entity, and an organization can include a whole group of companies.
Hierarchy. The company is a hierarchical structure with a manager. An organization can have an online status where there are only leaders, not administrators.

Is there a difference between a company and a firm? Despite the fact that 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 to 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 union of several legal entities or individuals who must jointly deal with various types of economic orientation for a guaranteed income. The range of services provided may include manufacturing, mediation, insurance and financial transactions.

All members of the association have certain rights and can influence common business activities. Regardless of which persons are representatives of the composition, the company can be registered only 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 a signature. Subsequently, the meaning has changed. Currently, in Russia, a firm has begun to call a commercial or industrial enterprise that offers certain services under a private label. Currently, the word "firm" can be used in two meanings:

The official name of the company that conducts business. Compulsory registration is assumed, since only after it can legal compliance be guaranteed. It should be noted that the subject acquires the status of a trademark.
The company is created by one or more persons to conduct profitable activities. In this case, even an individual can found a company.

Company and firm: comparison

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

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 might be the owner of a chain of restaurants or hotels while doing shipping, logging, and other niches at the same time. The company can only be engaged 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 in the board, allowing you to vote for certain decisions and use the same rights to manage the enterprise. The firm lacks a well-defined relationship between the parties.

Company and firm: distinctive features

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

Firm and companies: common 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, production activities, have certain corporate and collective property.

In each case, it is assumed that there is a separate and independent economic unit, which must have legal registration with the tax office.
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.
One person or several co-founders must independently make decisions for business development, taking into account the existing situation. At the same time, production and commercial independence is guaranteed.
The main task of entrepreneurial activity is to minimize financial losses and guaranteed profit.

In each case, it is assumed that certain tasks will be performed 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 may 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 market advancement. 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:

A production function that involves the ability to offer goods or services.
Commercial function based on sales of finished products, marketing and advertising campaign.
Financial function with the search for investments, obtaining loans, paying taxes, making a profit and solving other financial issues.
Counting function, involving the solution of documentary issues.
Administrative function with enterprise management.
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.

Interested in the question, how does an organization differ from an enterprise? Well, let's figure out the difference between them together.

In general and in general

What is meant by an organization? This is understood as a certain community created by people on the basis of common interests and / or to achieve goals and having signs of management. Organizations can be created in a wide variety of areas: cultural, social, economic, political, international, and so on. If they have the characteristics of a legal entity, then they are subject to state registration. But this is not necessary for all organizations. An enterprise is understood as a legal entity that is engaged in producing products, selling them, providing services and performing various works. That is, in fact, it is an economic entity. This is how an organization differs from an enterprise. But this is in general terms. Now let's talk about this in more detail.

What is an organization?

Based on the above, we can conclude that it is a broader concept and structure that includes all forms and types of people unification. Even the criminal groups belong to them. This is how an organization differs from an enterprise. While the latter are just one of their types. It should be noted that from birth to death, a person participates in various organizational associations. And in this case, the family is not meant, although it is. So, a person appears in such a medical organization as a maternity hospital. Then he is transferred to a nursery, kindergarten, school, university. He not only studies, but also works, is engaged in 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 general picture, then here you can pay the most attention to several of the most fundamental points.

Specificity of organizations

The point is that they can be non / formal. 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 a certain order that allows you to effectively influence the people who are part of such a structure. There is also certain documentation that regulates the activity. These can be charters, rules, regulations and other behavioral norms. There must be leaders who run the organization. They are appointed or elected. The state, political parties, a society for the protection of nature, an enterprise can be cited as formal organizations. All this is ultimately aimed at meeting various social needs, which, interestingly, do not have any signs of formality. Returning to informal organizations, I would like to note that, as a rule, they are small groups of people who are built on the principle of friendly relations. Trust and a sense of security and confidence are important here.

Enterprise as a type of organization

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

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:

An enterprise is a subject of a market economy, which is engaged exclusively in the fact that it produces goods and provides services. Whereas an organization can engage in activities that are not related to the economic sector (culture, science, sports, politics, etc.).
An enterprise cannot have an informal status. All his activities are based on a specific legal basis. Whereas an organization can be an informal group that operates according to unwritten rules
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 a leader is carried out through the will of its members.

Examples of organizations

Lonely illustrations of what and how were given within the article. Let's take another walk to expand our horizons. So, subjects of economic activity can take various 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.

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