Economic economic entity: description, types and features

Economic subjects are individuals or social groups that carry out the study of the surrounding world and its objects and influence them in the course of their work. They can be: an individual, a family, social groups, businesses, the state and so on. Subjects of economic relations make decisions, realizing their skills in practice, are responsible for the results of their work. Let us further consider their specifics.

general characteristics

Today, the activities of all economic entities are quite specific. It depends on the role that they perform under certain historical conditions, which is characterized by relative isolation, the existence of models of rational behavior, autonomy and established rules. In a number of sources, economic development agents are called agents. In this case we are talking about an organization or a person working on behalf of someone, business institutions, performing tasks. Existing functions are transferred to the entities directly by the economic system. And its features, in turn, determine the specifics of their work. For example, a commercial enterprise (corporation, partnership) produces output for its subsequent sale on the commodity market in order to extract income. Accordingly, it acts as an economic economic entity. Along with this, non-profit societies can also exist. They can also manufacture products, but for their own consumption. These subjects of the economic system act as participants in the non-market sphere.

The household

It has the ability to make decisions about the quality and quantity of consumption of existing goods, the sources of profit for their acquisition. Households act as suppliers and owners of production factors. They include:

• Workforce.
• Monetary resources.
• Production of subsidiary farming.
• Real estate, land and so on.

An individual can act as a household if he lives alone and carries out, for example, the production of agricultural products (a farmer). As it can be considered a community, family and so on. The main feature in this case will be farm management.

Specificity

Households, like other economic actors, act as sellers and buyers. In particular, in the market of production factors they are sellers (tenants). First of all, in this case, they sell the ability to work. In addition, these subjects of economic activity can lease free capital or property. Due to this they make a profit. From the income received, the consumer budget of households is formed. As a basis of profit, as a rule, the salary serves. It is a factor income, the amount of which varies, depending on the performance. The household distributes the profit between savings and current consumption.

Company

This economic entity is a legal entity, functioning to create and produce goods (products), perform work and provide services. In other words, the company decides on the release of goods for the implementation based on the exploitation of resources that are in its own possession, and are also purchased in the market of factors. As consumers of services and products created by the enterprise, there are households, the state, other companies, foreign ones as well. The source of the firm's work is its revenue. It includes compensation of expenses for the release of goods, as well as profit, through which further economic activity is carried out .

Features of the enterprise

Payments, which are carried out by the firm when acquiring production factors, act as its costs. Together with this, they form the streams of wages, interest, rent and so on. In the markets of finished goods, this economic entity creates a proposal. In this case, he acts as a seller, developing a certain pricing policy in accordance with existing conditions. The profit that the firm receives is partially transferred to the state in the form of taxes, is deducted to shareholders (in the corporate type of organization) in the form of dividends, and is also sent to expand production (invested).

Obligatory payments

Every economic entity must pay taxes. They can be direct or indirect. The first are taxes that are paid directly from profit. Indirect payments are made even in cases when the enterprise does not receive income. They are included in the cost of production. These taxes, in particular, include customs duties, VAT, excises, etc. At the same time, the state provides certain benefits to enterprises. Firms can get a subvention, subsidy, subsidy. Using these funds, the state implements an economic policy aimed at regulating the activities of existing enterprises in the country.

Forms of ownership

Depending on them, different types of companies are singled out. The individual form acts as the basis for the formation of a family or private enterprise. Collective type of property is inherent for partnerships, partnerships, societies (LLC, CJSC). There is also a state and municipal form. They are typical for non-profit, unitary enterprises and organizations (unions, foundations and others).

The state

It is also regarded as an economic subject. The key issue is the issue of money. It is sold through the Central Bank. The Central Bank, as a state organization, also regulates financial flows. In trade turnover, the state can be both a buyer and a seller. In the market of production factors, this economic entity acquires all the resources necessary to ensure the functioning of its structures. Acting as a seller or lessor, the state sells or provides for temporary use products that are produced by state-owned enterprises. In addition, it collects taxes from other economic entities, provides them with benefits, guarantees, subsidies, subsidies.

Directions of state policy

Acting as a key regulator of the economy, the government's activities are seen at both the macro and micro levels. The policy of the state should be oriented at maximizing the national welfare in conditions of rather limited opportunities. Within the framework of microeconomics, an analysis is made of the government's impact on specific actors: producers, purchasers, sellers, etc. At the macro level, its impact on inflation, entrepreneurial activity, unemployment, and so on is estimated.

Key Government Challenges

A number of functions that the state implements are oriented to the maintenance and development of the economy. These include, in particular:

1. Provision of a regulatory framework and the formation of a social atmosphere that contribute to the effective functioning of the market.
2. Protection of competition.
3. Providing redistribution of income and benefits.
4. Stabilization of the economic situation. This task involves monitoring the level of employment and inflation, stimulating productivity growth.
5. Adjustment of the allocation of resources to change the structure of the national product.

Implementation of the state program

The tasks to ensure the normative basis of a market economy are addressed through the introduction of certain rules of conduct. They should be guided by all manufacturers when interacting with consumers. The normative acts approved by the government concern the definition of the scope of distribution of property rights, regulation of relations between firms, the prohibition on the sale of counterfeit medicines and products. The legal documents also define the standards for marking, product quality, responsibility for non-observance of contractual conditions, etc.

Conclusion

In stable states, governments develop and implement social security programs, set minimum wages and unemployment benefits. The state strictly controls the level of prices, fixing them to increase the income of a number of categories of citizens. Ensuring equality, free competition, creating conditions in which all subjects of the economic process could realize their potential - are considered the main tasks of the government. A variety of programs are developed for their implementation. Along with this, the state should contribute to the replenishment of the budget. For this purpose, differentiated tax rates are established. Using economic and financial instruments, the government regulates the distribution of profits through direct and indirect intervention in the functioning of the market structure. Due to the existing system of taxation, as well as due to government spending on social security, an increasing part of the national income is channeled from relatively rich participants in the turnover to relatively poor. In this process, however, a key role belongs to households and enterprises. They act as a source of budget revenues. Manufacturers produce goods, provide services and perform work, providing the society with the necessary goods.