World of translation : Economy
, 18:11

types of enterprises, types of companies

Considering the process of privatization of the economy in Ukraine we can allocate basic social and economic goal, which is to transfer the part of state property to labor collectives. Ukrainian lawsThis is the main way to combat with the alienation of workers from the ownership of the results of labor, from the means of production from the economic power, from the production management, etc. In accordance with the Ukrainian laws there are three types of companies: individual, collective and public. Family and private enterprises refer to the individual.

If we consider a broader classification, then there are the following types of companies:

1. The collective, rental.

Collective enterprises, rental enterprisesRent is the means for creating of collective ownership, the primary mechanism of denationalization of property. When signing the agreement, the state transmits working capital and operating funds for a period of 10-15 years, for a fee, in possession of the labor collective for temporary use. Labor collective is the founder of the rental company. Can be registered as a separate legal entity, as an organization of tenants.

rentRent is a fixed by the lessor value. This is a pay, set to a specific period. It is a kind of economic calculation. Tenant of the enterprise independently allocates calculated economic income. He has the discretion to use it for social purposes, the development of production and wages. Rent is not the kind of property - its a form of economic management.

The rental collective is more independent in comparison with rental company. It tends to improvement and development of production.

2. Joint-stock companies.

Joint-stock companiesAs part of a social market economy stock ownership performs following functions:
- Joint-stock entrepreneurship promotes the formation of the material and technical base, contributes to democratization in the management of the company, increases the interest of workers in the optimal use of production means and working time;
- Through the share purchase it expands the sources of accumulation by cash assets of the population;
- Contributes to the development of commodity-money relations;
- Tends to a balanced supply and demand in the economy;
- This form contributes to more effective management of the amount of money.

The following corporations have the right to exist in Ukraine: closed joint-stock companies in which the shares may be distributed only among the founders, and the open joint stock companies where the distribution of shares happens through a public purchase and sale on the stock exchange.

Share is the main attribute of the joint stock company. A permanent security. It confirms the share contribution (sharing) of shareholder in the share capital. Gives the right to membership in the joint- stock company, and to receive dividends (profits). Share confirms ownership of part of the property, in case of liquidation of the company.

Shares Shares can be simple, privileged, bearer and registered. It should be a book of registration for registered shares, to which enter the information about each such share. This information includes data about the owner, about the time of purchase and the number of shares of each shareholder.

Bearer shares need only the entering of data about the total number of shares in the registration book.

Holder of a preferred share, instead of simple, has a preferential right to profit-making. At liquidation of the company, the owner of such share have priority in the allocation of property. dividendsHolders of preferred shares do not are eligible to participate in the management of the company.

Dividend payments are made by joint- stock company on results of year. Dividend - is income, remaining after payment of taxes and credits.

3. Limited liability companies.

Limited liability companiesThey are created by combining assessed contributions.  This is a closed companies, which do not issue shares, and do not set dividends. Distribution of profits is proportional to assessed contributions. Therefore, this form of enterprise is the most convenient and attractive.

Registration of the company occurs just after making by each founder of 30% of his contribution to the bank account.

4. Contractual companies.

Contractual companiesThey can be created by legal entity and physical person. These companies are created to take advantage of joint activities in the market, while retaining the primary independence.

Author: World of translation
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