Corporate enterprises are defined as corporations, joint stock companies, co-operatives, limited liability partnerships and other financial and non-financial enterprises which by virtue of legislation, administrative regulations or registration, are recognized as business entities independent of their owners. 7
"Enterprise," "corporation" and "incorporated" are closely related terms used to describe the formal or informal structure of a business. They are sometimes used as synonyms, but can have distinct meanings in certain contexts. 7
Of the words enterprise and corporation, enterprise represents the more general term for a business. Anyone can call their company an enterprise. In fact, corporate enterprise could even add the word to company's official name if company wish. Although it is not always the case, some people reserve the word enterprise for entrepreneurial endeavors, such as startups or other innovative and new company ideas. 7
While "corporation" is sometimes used to describe a large business, a true corporation is a company that has gone through the process of incorporating. A corporation has some pros and cons relative to other business structures. The business is treated as a separate entity from its owners, a status that confers certain rights on the corporation. 8
For example, corporate owners and shareholder avoid personal liability for the business's debts, a legal form of protection that is not available to some other types of businesses, like sole proprietorship. Corporations can also bring lawsuits in the corporation name, rather than by an individual filing the suit. One drawback of becoming a corporation is that company pay corporate taxes plus individual taxes on the dividends company receive on company earnings 8
Besides business corporations, there are also charitable, cooperative, municipal, and religious corporations, all with distinctive features. In the Uzbekistan all governmental units smaller than a state are municipal corporations. Here is difference with term of corporate and other enterprises. 8
Profit income. By selling a service or products for more than they cost enterprise is the basis of profit income. Corporate enterprise could open a retail store and sell products, offer professional services and charge for time, or combine the two. It is one of the hardest steps to move from earned income to profit income, but it is the dream of many employees. Becoming self-employed or an entrepreneur can be a difficult road, and there are risks. 18
Interest income. If business has spare cash sitting in the bank account, it is losing money. There are many ways company can put its money to work and earn a passive income stream. Maybe invest it in a savings scheme and use the power of compound interest to gain a passive income. Buying government bonds is another safe investment that will generate interest. 18
Dividend income. When corporate enterprise buy shares in a company, corporate enterprise become part-owner of that company and entitled to dividend payments. Well-timed investments in companies can generate excellent passive income streams. 18
Rental income. Property investment is an excellent way of protecting money and generating an income from rent. There are two downsides to this income stream. First, it requires a substantial investment initially, unless it is part of an investment scheme. Second, releasing the cash can be time-consuming and costly, so if corporate enterprise may need the money quickly. 19
Capital gains income. Buying and selling assets can provide company with an income known as capital gains. For example, if corporate enterprise buy stocks and shares worth $100 and then sell them on for $120, the capital gain is $20. It is essential to consult an accountant first about capital gains, as each country has different rules. Depending on the asset sold, the capital gains tax may wipe out all of profit. 19
Royalty income. This is a passive income stream generated by designing, building, or making something unique and charging people and businesses to use it. Musicians are a prime example. In most cases, musicians are signed to a particular label, such as Virgin Records. The record company pays to record the musicians, produce the records, market them, and sell them. The musicians receive a royalty payment for every album sold and every time it is played to the public. Famous musicians, such as Elton John, make millions from the royalties for playing his music. 19
Low prices. Setting prices is one of the first and most important decisions company will have to make for business. How lider set prices could easily dictate company future success. Most entrepreneurs immediately caution themselves not to set prices too high; if company product costs more than firm competitors', company could turn away company entire target market. 27
Too much overhead. There are some things business absolutely needs to survive. However, company may be overestimating needs in some key areas. Too many ongoing costs. It doesn’t take much for business expenses to start spiraling out of control; and because expenses come in so many forms, it’s hard to pin down any one area where company is bleeding money. 27
Unseen or hidden costs. Company may have a solid expense plan worked out, but there are some expenses and they generally aren’t lumped into “regular” expenses. For example, if business runs into emergency repair needs, that event could instantly demand all the revenue team has made for the month. 27
Fierce competition. It’s possible that enterprise expenses and prices are just fine, but company is facing competition too tough to keep up with. For example, if firm competitors have products similarly priced to theirs but objectively better, firm won’t sell enough to say alive. 28
A lack of market awareness. Company may also be suffering from a lack of market awareness; if company product is at an ideal price for both corporate enterprise and its customers, enterprise still might not generate a profit if no one knows it exists. Firm greatest tools to overcome this obstacle are marketing and advertising; they cost a bit up-front, but are well worth the investment if company plan them properly. 28
Inconsistency. There’s a chance that enterprise have a perfect way to make business profitable -- but firm is executing too inconsistently for business to reap the rewards. For example, company expenses may swing enormously from month to month, or sales team might perform unpredictably based on individual variables. 28