The composition of the property of the enterprise

Irina Kosheleva
Irina Kosheleva
March 18, 2013
The composition of the property of the enterprise

Success in business depends not only on the knowledge of one’s rights and obligations as a legal entity, but also on the intricacies of economic issues. For example, it is important to know what is included in the property of the enterprise, what is its structure and composition.

Concept definition

In order to talk about the composition of the property of the enterprise, it is necessary to initially determine what is included in the very concept of “enterprise property”. From an economic point of view, the property is all the tangible or intangible elements that the company uses for its production activities, that is - for profit. Also, the property of the enterprise includes all other types of property, without which it is impossible to conduct business activities.

Composition

Now let's take a closer look at what the composition and structure of the enterprise’s assets are:

As a rule, in the composition of the property of the enterprise there are two elements:

  • Tangible;
  • Intangible

Material element

This item of property includes all those items that have their own material representation. That is, everything that can be touched is material elements. For example:

  • cars,
  • buildings, structures,
  • finished goods,
  • securities,
  • cash,
  • raw materials, equipment, semi-finished products,
  • land
  • and even a stapler on the desk at the employee.

All this is tangible or material property. Of course, only if this property is owned by the company and is used for profit.

Intangible element

This element includes the property that does not have its material equivalent and appears in the process of the life of the enterprise itself. For example, such concepts as:

  • regular customers,
  • company reputation
  • the very name of the company and its significance
  • "Brand"
  • trademarks used by the company
  • staff experience and qualifications
  • know-how, copyright,
  • patented production methods
  • leadership skills
  • contacts and stuff.

All this intangible property of the enterprise.It can be transferred or sold in the same way as tangible property. And just like tangible property, it is protected by law.

Analysis

A very important method of monitoring the efficiency of the enterprise is to analyze the composition of the assets of the enterprise. Through this analysis, you can find out which property works for the benefit of the enterprise, and which property is ballast and only wastes energy resources.



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