Trusts are what? Types and forms of production associations

In the conditions of a market economy, the independent existence of individual small industrial enterprises continues, as a rule, no longer than 3-5 years. To survive in a competitive environment, various associations are created - the cartel, the syndicate, the trust, the concern. Let us consider how these concepts differ from each other.

Types of production associations

The cartel is a union of different enterprises of a particular industry. Each of the participants has independent ownership and the right to dispose of the products. The cartel participants unite the agreement on the distribution of the sales market, the quotas for the output of a particular product, the joint regulation of prices.

A syndicate is a kind of cartel. Its participants also retain both legal and economic autonomy, but a separate structure is usually created to implement the output. This form is typical for the enterprises of the metallurgical and mining industry.

Trust is an association in which previously independent enterprises lose legal and financial independence. At the same time, the ownership of participants is merged. This is done either by combining the assets of individual entities, or with the repayment by the parent organization of the trust of a controlling stake in other enterprises. That is, trusts are a form of merger in which all forms of production and economic activities of the participants are brought together.

Concern is a union of legally independent enterprises of certain industries. Such associations can be "horizontal" or "vertical", they are assembled into production chains of representatives of technologically interrelated or separate types of productions. The entry of enterprises into concerns is characteristic of technologically complex industries. At the same time, all participants retain their legal independence, having the status of joint-stock companies.

Management of joint activities of the concern is carried out by the parent organization, called the holding company.

Trust as a single production and economic complex

The meaning of the word "trust" is based on English trast - faith, trust. In the economy, "trust" refers to both the process of transfer of funds to trust management, and the result of this activity - the combined assets themselves. In addition, this concept implies a serious financial responsibility of the one who takes care of these funds.

Thus, the concept of "trust" implies the unification of independent entities for the conduct of general industrial and economic activities. Participants can be legal entities or individual entrepreneurs.

A bit of history

The first trust appeared in the USA in 1879. It was the giant of the oil industry, Standardoil. The trustee exercised control over the economic entities entering into the trust. This model was later copied in other industries. In the Russian Empire, the trusts were mainly foreign. Under Soviet rule, the decree of the All-Russian Central Executive Committee gave a definition of trust as a state-owned industrial enterprise with the right to independent economic activity, approved the concept of authorized capital, and introduced a distinction between fixed assets and current assets.

In 1927, a provision appeared on industrial trusts, which expanded the powers to manage property. But by the end of 1930, as a result of changes in the management of economic activities, their rights were severely limited. In the future, the very concept of "trust" was used to designate a separate production entity.

What is a construction trust?

Construction is a branch of production, the specificity of which implies the close cooperation of all participants in the process for organizing joint joint activities. Thus, the building trust is an indicative model that gives an idea of trusts as such. Consider this concept a little more.

The building trust is the main self-supporting unit of management. He has material and labor resources and economic independence. Its structure includes directly production units, auxiliary services and facilities.

The main tasks of the trust are the qualitative and timely construction and commissioning of capacities and construction projects, intensification of construction production and increase of its efficiency, rational use of capacities and increase of labor productivity, reduction of the cost of works and carrying out of necessary ecological measures.

Construction trusts are organizations that operate most often in a contracted way. In this case, the facilities are built and handed over to the customer in accordance with the concluded contracts with the help of the company's own material and technical and human resources.

What are the trusts?

Building trusts are not always homogeneous structures. They can vary greatly in the nature of contractual relations (general contracting and subcontracting), type of work performed (general or specialized), areas of activity.

In addition, the construction trusts are organizations that have a clearly structured management system. Functional personnel include workers, masters, foremen, surveyors and other persons engaged directly in production activities. To linear - employees of the apparatus of the trust, performing the functions of preparation and maintenance of the work process.

Management of the trust is carried out by its administration.