Ticket 1 Enterprises (firms) field of activity and its main characteristics

1. Methods of analyzing economic activity.

Analysis of organization’s financial and economic activities means in-depth science based study of organization’s activities to improve its performance. Analysis of financial and economic activities is based on the integrated and system approaches.The subject matter of financial and economic analysis of organization’s activities is organization’s business. The objective of financial and economic analysis of organization’s activities is improvement of its business performance.Economic analysis is the process of assessment or examination of any particular topic or issue to understand how they are affecting the organization or system. This process of analysis comprises administering and operationalizing a comprehensive and holistic study of various processes such as production, consumption, consumer behavior, national income, employment, and others. It studies and estimates the topic in detail with all the aspects associated with the industry concerned. There are two prominent types of methods of economic study or analysis: 

A) Deductive Method B) Inductive Method. 

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  The Deductive Method is also known as the ‘Analytical Method’ or ‘Abstract Method‘ or ‘Priori Method’
  

or ‘Hypothetical Method’. In this method, the study starts by assuming factual information or rudimentary facts and then arriving at a concrete result or conclusion by following logical reasoning or analytical abilities. In this method, a theory is built on the basis of certain assumptions and experiments.

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  Inductivemethod :In this method, analysts or theorists advance from a practical outlook to a scientific
  

problem in order to be more accurate in finding the most accurate solution using theoretical knowledge and practical applications. 

2. The enterprise as an object of state regulation.
ENTERPRISE The aggregate of all functional elements participating in a business process improvement action regardless of the organizational structure housing those functional elements.
LEGAL FORMS OF ENTERPRISES Individual___ that based on the right of ownership of one person which get all profit and carry all risks from business (private enterprises). Partner___that based on the association of property of different individuals and participating in entrepreneurial activity(complete, komandete, limited liability company and company with additional responsibility). Corporate, that based on participating in activity of enterprise of persons by acquisition(private and public joint stock)
Government regulation of firms uses the ‘coercive power’ of the state to alter firms' pricing, entry, production, investment, and product choice decisions. An extensive empirical literature analyzes the effects of ‘economic regulation’ of price and entry as well as environmental, health, safety, and information regulation. Results of this work suggest that regulation cannot be understood simply as an efficient intervention to correct market failure. Research on the political economy of regulation seeks instead to understand the origin, structure, and reform of regulatory policy as an outcome of rent-seeking behavior by interest groups mediated through the political process. These models have considerable empirical power in explaining variation in support for particular regulations, but fall short in explaining why some industries are regulated while others are not, and why policy in this area tends to occur in waves.