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

2.Market as a function of economy-
Markets are places where buyers and sellers can meet to sell and purchase goods and services.Markets provide places for firms to sell their goods and gain revenue.Markets provide places for consumers to buy the goods and services that they need.Markets are mostly self-regulated, relying on the principles of supply and demand to determine prices.Role of markets-determine prices,consumerchoice,increaseefficiency,meeting places for firms and consumers,ration scarcity There are many limitations of markets, however, they can be part of the solution towards economic development and providing decent living standards. The economist Greg Mankiw’s sixth principle of economics is “Markets are usually a good way to organize economic activity”.Most economists would agree with this to some extent. If only because there are few practical alternatives. However, very few economists would argue we should just rely on markets. There needs to be a balance with government intervention dealing with the worst excess of the markets, such as inequality and externalities. A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general.In a market economy, most economic decision making is done through voluntary transactions according to the laws of supply and demand.A market economy gives entrepreneurs the freedom to pursue profit by creating outputs that are more valuable than the inputs they use up, and free to fail and go out of business if they do not.Economists broadly agree that market-oriented economies produce better economic outcomes, but differ on the precise balance between markets and central planning that is best for a nation's long-term wellbeing.
3.Basic capital-
In economics, basic capital refers to the assets—physical tools, plants, and equipment—that allow for increased work productivity. By increasing productivity through improved capital equipment, more goods can be produced and the standard of living can rise.TYPES OF BASIC CAPITAL VALUE Original value is an actual cost of fixed capital in the moment of introduction of them in an action. or Present value is a cost of operating fixed capital at the modern terms of production. Complete value is a cost of fixed capital in the new, not threadbare state. - Wear of fixed capital founds = Depreciated value is a cost of fixed capital, yet not carried on the cost of the made products. Salvage value is a remaining cost of fixed capital is in the moment of their leaving as a result of wear. Book value The net amount at which an asset appears on the books. Usually cost less accumulated depreciation. Depreciation In accounting this refers to the process of allocating a portion of the original value of a fixed capital founds to each accounting period so that the value is gradually used up (written off) during the course of the asset's estimated useful life. Depreciation expense Is a part of value of fixed capital, which joins in the cost of the made products. The capital of a business is the money it has available to pay for its day-to-day operations and to fund its future growth. The four major types of capital include working capital, debt, equity, and trading capital. Trading capital is used by brokerages and other financial institutions.