A trust is one of the forms of a monopoly association of enterprises, in which all participants in it lose their production, financial and legal independence and are subject to a single management. In this case, the profit is distributed in accordance with the equity participation of the enterprises included in it. In connection with this circumstance, the trust is considered to be the predecessor of such associations as a holding and a concern.
Instructions
Step 1
In the USSR, self-supporting associations of enterprises in one industry were called trusts in order to maintain a normal level of production and ensure their economic life. Currently, in our country, the term "trust" is used in relation to construction and assembly associations (construction and assembly trusts).
Step 2
From an economic point of view, a trust is the closest form of association of enterprises, since they lose their independence and turn into a division of the trust. The management carries out the management of the trust from a single center.
Step 3
A trust as a type of enterprise association has distinctive features: - a trust is the most rigid form of all forms of enterprise integration; - with this form of association, all aspects of enterprise activities (financial, economic, legal, industrial, etc.) are integrated; - a trust differs in production uniformity of activity. In this connection, its specialization is noted in the production of one or more of these types of products; - all enterprises united in a trust are subordinate to one center, which carries out operational management of both the production complex and service and sales enterprises.
Step 4
Trust as a form of association is very convenient for organizing combined production. That is, enterprises of different industries are integrated into one company, which are elements of the same technological cycle or play an auxiliary role in relation to each other.
Step 5
Currently, there are many tests in every country. Most of them are focused on those areas that can create large profits. There are trusts for mining and gold, oil, real estate construction. We can observe a similarity of a trust in the markets, when one entrepreneur acquires several places and on their basis begins to build his business.
