What are the main features of the enterprise

An enterprise for carrying out entrepreneurial activity must possess a number of features. Without certain mandatory features, an organization cannot become an enterprise engaged in business activities.

An enterprise is an autonomous business entity created and operating in accordance with the law with the aim of producing products and providing services to meet the needs of consumers and maximize profits.

Commercial and non-profit enterprises

In order to carry out production activities, the enterprise must register with the appropriate state bodies. After registration, the company receives the status of a legal entity, which allows the organization to carry out production activities and independently bear legal, tax and other responsibilities.

All existing enterprises are divided into commercial and non-profit.

A commercial organization is a legal entity whose main goal is to profit from production. Making a profit is the main activity of a commercial enterprise. Such organizations produce goods or provide services to consumers. Legal entities that are commercial organizations may be created in the form of:

- business partnerships or companies;

- production cooperatives;

- state unitary enterprises;

- municipal unitary enterprises.

Non-profit organizations are legal entities whose main purpose is not to profit and distribute income between participants. Such enterprises are created to achieve social, cultural, charitable, political, scientific and educational goals that are aimed at achieving public goods. These are public organizations financed by the owner of the institution, as well as various charitable foundations. Non-profit enterprises may be engaged in entrepreneurial activity only if this activity is aimed at achieving public goods.