2_Forms of Business Organizations
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INTERNATIONAL BUSINESS SCHOOL
Plekhanov Russian Academy of
Economics
Economics of the Firm
Types and Forms of Business
Organizations
Prepared by Anna A. Dokukina
Learning objectives
After studying this section, students should be able to describe:
Classification of business-organizations
The idea of the profit motive
Non-incorporated / incorporated organizations
The features of charities, governmental organizations and QuANGOs
State and government-linked corporations (Russian practice)
Parameters of classification
Economic sector
Profit motive
Legal status
Economic sectors
Mixed economy
Private sector |
Public sector |
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(or owned by the state) |
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Private sector
The aim of the most private sector enterprises is to make a profit
Public sector
The aim of the most public sector enterprises is to
provide the public with essential services
Surplus
The amount of money that is more than what is need or used.
The amount of money that a company has left after it has
paid for all the things it needs.
The profit motive
For-profit Not-for-profit organizations organizations
exist primarily |
do not aim at |
to make a |
making a |
profit |
profit |
Human and legal entities
Human entity |
Legal entity |
“biological”, |
organization |
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natural person |
allocated certain |
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rights |
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allocated certain |
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rights |
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Rights of legal and human entities
to make contracts;
to carry out business transactions;
to own property;
to employ people, etc.