An enterprise is an independent economic entity that has the rights of a legal entity, which, on the basis of the use of property by the labor collective, produces and sells products, performs work, provides services.
The main task of the enterprise is economic activity aimed at making a profit to meet the social and economic interests of the members of the labor collective and the interests of the owner of the enterprise’s property.
It has the following features:
First, the enterprise must have in its ownership, economic management or operational management separate property that ensures the material and technical possibility of the functioning of the enterprise; Secondly, the enterprise is responsible with its property for the obligations that arise in its relations with creditors, including to the budget; Thirdly, the company acts in economic turnover on its own behalf and has the right to conclude all types of civil law contracts with legal entities and individuals; Fourth, the enterprise has the right to be a plaintiff and defendant in court; Fifth, the enterprise must have an independent balance sheet and submit the established state in a timely manner.
reporting authorities; Sixth, the enterprise must have its own name, containing an indication of its organizational and legal form.
In the system of national economy, the enterprise is the main link, which is determined by the following circumstances:
the company manufactures products, performs work, services that form the basis of the life of both a person and society as a whole; the enterprise is the main subject of production relations, which are formed in the process of production and sale of products between various participants; the enterprise is not only an economic, but also a social organization, since its basis is a person or a labor collective; the interests of society, the owner, the collective and the employee are intertwined at the enterprise, their contradictions are unfolded and resolved; the enterprise, carrying out production economic activities, has an impact on the environment, determining the state of the human habitat.
The main principles of the organization of the enterprise are:
organizational and administrative isolation; financial and economic independence; production and technical unity.
Organizational and administrative isolation means that the enterprise has separate property, a single team, a single administration and has the right of a legal entity.
Financial and economic independence lies in the fact that the enterprise organizes its activities on the basis of self-sufficiency and has a single complete form of accounting and reporting. It can dispose of cash material and financial resources in order to ensure its successful functioning and development, has a settlement account in a bank to which all funds are received and through which all settlements of the enterprise are made, has the right to independently plan its activities, carry out foreign trade operations, etc.
Production and technical unity is ensured by a set of means of production (buildings, structures, machines, equipment, etc.), united in special production units and parts technologically related in the production process. It predetermines a single system of technical documentation, a common technical policy, a single system of machines, the availability of general, auxiliary and maintenance units.
The main division of the production enterprise is the workshop, which is a set of production areas territorially allocated for the manufacture of a part of the product or the performance of individual stages of technological operations (obtaining forgings, castings, machining, etc.).
In a number of industries (coal, alcohol, sugar, etc.), enterprises have a non-shop structure and consist of plots. Small enterprises of other industries have the same structure.
In the course of its activities, the company performs the following functions:
1. Financial management. Taking care of finances is the starting point and the end result of the work of any enterprise. Its goal is to ensure financial stability and liquidity. In a market economy, this function is brought to the fore. The importance of financial resources, with the help of which the formation of an optimal capital structure and the increase in the production potential of the enterprise, as well as the financing of current economic activities, is sharply increasing. The financial well-being of the enterprise and the results of its activities depend on how much capital a business entity has, how optimal its structure is, how expediently it is transformed into fixed and working capital.
2. Personnel management. It is expressed in the selection and hiring, training and retraining of personnel in accordance with the needs of the business, solving all issues related to its effective use.
3. Research and development. Activities to create new types of products and technological processes, improve existing ones in order to increase production efficiency and expand the sales market.
4. Marketing, which provides market research, identification of the needs and demands of consumers, real orders for products and its successful implementation.
5. Production, which follows from the main task of the enterprise – making a profit. This is possible only through the production of products, works and services necessary for society.
6. Logistics. This function is realized as a result of the acquisition of raw materials, components, machinery, equipment and other material values necessary for economic activity.
7. Ecological function, providing for the production of environmentally friendly products and reducing its environmental intensity. The environmental activities of the enterprise are aimed at reducing and compensating for the negative impact of its production on the environment.
8. Social function. Provides conditions for the reproduction of labor power, material interest in the results of labor. The company is responsible for occupational injuries, is obliged to provide safe working conditions to its employees. An important component of social activities is the provision of training, retraining and advanced training of personnel.
The company operates on the basis of the charter, which is the main document that defines the tasks, rights and scope of the enterprise.