The trade, financial or production activities of a corporation represented by one or more associated entities. For a better understanding of the essence of corporate business, you should compare it with the other two types - personal and partnership. In the first case, the business is run by one person (an individual entrepreneur), and in the second - by several persons united by common economic interests. Affiliate business is somewhat similar to corporate business, but only on a smaller scale, with little working capital and limited financial resources.
In the modern world, it is the corporate business represented by the largest companies and financial associations that has a serious impact on the development of the world economy. Typically, corporations are large joint stock companies, public (open) or non-public (closed), which can merge with each other to form even more financially strong companies. The essence of corporate business lies in their financial power, thanks to which they can survive in an economic crisis, becoming a serious competitor to other subjects of market relations.
Features:
Consolidation of companies on the principle of similarity of interests and one field of activity (single direction of development).
Strong financial influence in the regional, state or world market (transnational corporations).
High competitive advantages over other forms of business
The best survival rate in an unstable economy: production decline, inflation, falling purchasing power.
The ability to take loans from the state or, on the contrary, act as its creditor.
More here - https://www.worldbank.org/
Comments