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Business Economics - Pokropivny SF

1.4. Voluntary and institutsionalnyeobedineniya enterprises (organizations)

In accordance with the current legislation are two types of associations of enterprises and organizations (organizational structures) can be created and operate in Ukraine: 1) voluntary; 2) institutional.

Enterprises (organizations, companies) are entitled to voluntarily unite their scientific, technical, industrial, commercial and other activities, if it does not contradict the antimonopoly legislation.

As the global and domestic experience of management in a market economy, enterprises and other primary business entities can create different on the principles and objectives of voluntary associations (Figure 1.6.):

Fig. 1.6. Forms of voluntary associations of enterprises (firms, companies) and organizations

• Association - the simplest form of business combination contract (firms, companies, organizations) with a view to permanent co-ordination of economic activity. The Association has no right to interfere in the production and commercial activities of any of its participants (members);
• Corporation - contractual association based on the integration of economic entities of the scientific and technical, industrial and commercial interests, the delegation of certain powers of the centralized regulation of activity of each of the participants:
• consortiums - temporary charter union of industrial and banking capital to achieve a common goal (for example, the implementation of major joint economic project). The participants of the consortium may be public and private companies, as well as some countries (such as the International Telecommunications Satellite Consortium);
• concerns - statutory form associations of enterprises (companies), which is characterized by the unity of ownership and control; association occurs most often on the principle of diversification, when the same group integrates the enterprise (firm) of different sectors of the economy (industry, transport, trade, scientific organizations, banks, insurance). After creating concern economic entities lose their independence, submitting a powerful financial institutions. In modern conditions significantly expanded network of international concerns;
• Cartels - contractual association of enterprises (firms) mostly the same industry for the implementation of joint business - regulation of sales of manufactured products;
• syndication - the organizational form of the existence of species cartel agreement providing for the sale of products produced by the participants through a joint sales agency and sales network of one of the association members. In the same way it can be arranged purchase of raw materials for all participants in the syndicate. This form of business combination is inherent industry with mass production of similar products;
• trusts - monopolistic business combination previously owned by various businesses into a single production - economic complex. At the same time the company completely lose its legal and economic independence as integrate all areas of their activities;
• holding companies (holding companies) - a specific organizational form of association of capitals: an integrated society that are not directly engaged in production activities, and the use of its funds for the acquisition of controlling stakes in companies that are members of the group or other voluntary associations, with the aim of controlling the activity of such enterprises. Merging holdings in entities have legal and economic independence, however, the right to address the main issues of their work belongs to the holding company;
• financial groups - unions legally and economically independent enterprises (firms) of different sectors of the economy. In contrast to the group headed by financial groups are one or two banks that manage capital companies (firms, companies) that are part of financial groups and coordinate all aspects of their activities.

Now, the main forms of voluntary associations of enterprises (companies and organizations) are increasingly becoming corporations, and financial corporations (industrial and financial) group.

In Ukraine, along with volunteer created and functioning institutional association, order and direction of the activities of which are defined in the policy-making procedure ministries (departments) or directly to the Cabinet of Ministers of Ukraine. These include industrial, scientific - production (science and technology), production - trade and other similar associations (complexes, malls), which integrate the stage of creation (design), production, sales and after-sales service of long-term use of products. In the economy of Ukraine function powerful state corporations, created on the basis of former Industry specific ministries (such as the state corporation "Ukrastroymaterialy"). Institutional cross-sectoral associations of enterprises and organizations are formed and operate under a variety of official names in agriculture, construction, housing and communal services and other related sectors of the Ukrainian economy. In such organizational - integration of education applied economic corporate nature management methods that adequately correlate with the methods of management of primary units (enterprises, firms, companies) the relevant production - economic systems.