Нет. Barter: a mixed blessing.

Economic activity began with a caveman, who was economically self-sufficient. He did his own hunting, found his own shelter, and provided for his own needs. One person was more able to perform some activity than another, and therefore each person concentrated on what he did best. While one hunted, another fished. The hunter then traded his surplus to the fisherman, and thus each benefited from the variety of diet.

Нет.The Firm and Its Invironment

The basic economic institution in different economic systems is the business. Businesses determine much of how the economy operates. Businesses produce goods and services, and they соте in every shape and size. Although the vast

majority of the world' s companies are small, in many countries the economy is dominated by large firms. Large

businesses differ from small ones in а wide variety of ways. In many countries there are nationalized companies belonging to the state, as well as private companies. А private company might be а small firm with just one owner or а very large firm with thousands of shareholders "owning" the firm.

Starting а business requires more than natural resources, labour, and capital. An entrepreneur must organize these resources. Many entrepreneurs start their own business as sole proprietorships. А sole proprietorship is а one-owner business. The advantages of sole proprietorships (they are easy to organize, decisions can be made quickly, owners receive all profits, etc.) explain why so many people start businesses and try to run them alone. However, а sole proprietor sometimes encounters difficult problems in starting а business. One person has limited resources to start and operate а business.

According to the law, the owner and the business are one and the same. If the business fails, the owner, must pay the debts.

Still another problem occurs because of the limited life of the business. If the owner of а sole proprietorship dies, an entirely new enterprise must be started.А partnership is an association of two or more people in order to run а business. Partners generally contribute equal capital, have equal authority in management, and share profits or losses.

Partnerships are easy to organize, decisions can be made quickly, profits are shared with only а few people, and the owners are responsible for success or failure of the business.

Like proprietorships, partnerships are not frее of problems. Liability is still unlimited. Like sole proprietors, partners are responsible for the debts of the business. Liability then can actually be greater in а partnership than in а sole proprietorship, since each partner is responsible for all the business debts. Partnerships also have limited life. If one partner dies, the business must be dissolved.

А partnership is not а legal entity separate from its owners; like sole traders, partners have unlimited liability: in the case of bankruptcy, а partner with а personal fortune can lose it all. Consequently, the majority of businesses are limited companies (US - corporations), in which investors are only liable for the amount of capital they have invested. If а limited company goes bankrupt, its assets do not cover the debts, they remain unpaid (i.е. creditors do not get their money back). Often one person does not have enough money to start а business. Combining the resources of а number of people and forming а corporation is а way to raise the large amount of money needed. А corporation is а business that, although owned by one or more investors, legally has the rights and duties of an individual. Corporations have the right to buy, sell, and own property. Corporations may make legal contracts, hire and fire workers, set prices, and be sued, fined and taxed.

А corporation issues shares of stock which are certificates representing ownership in the corporation. Investors buy and sell these shares of stock. Because а corporation may have many owners, the stockholders elect а board of directors.

If the corporation makes а profit, shareholders may receive а dividend - а share of the profit paid on the stock.

Corporations have some advantages. First, а corporation has limited liability. Thus if the corporation goes bankrupt or is sued, the stockholders lose only the value of their stock. Second, corporations have the ability to гаме very large amounts of money. They use this money to change models, replace obsolete equipment, and build new factories. Corporations can raise money by selling bonds, as well as stocks. Third, а corporation has an unlimited life. That is the corporation continues to function despite death, transfer, or changes in ownership, management, or labour.

Corporations have disadvantages as well as advantages. First, complex forms must be filed with the state or federal government. А charter must then be issued, investors found, shares sold, and manufacturing or sales begun. Second, а corporation's profits are subject to double taxation. А corporation must pay taxes on its profits before the profits are distributed to stockholders as dividends. The stockholders include this dividend money as personal income on their income tax forms. Stockholders pay taxes on this income. The government, then, has taxed the corporation's profits twice. Third, in corporations with many owners or stockholders the individual share of profits in the form of dividends is comparatively small. In а single proprietorship or partnership, profits are divided among fewer individuals. Therefore, individual incomes are often greater. Fourth, а corporation's owners do not directly control the business.

In very large firms the shareholders have very little to do with the day-today running of the firm. This is left to the management. The organizational structure of some companies is very hierarchical with а board of directors at the top and the various departmental heads reporting to them.