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Knowledge Base |
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1 |
The
establishment:
Project or part of project with constant site, performing
one or more economic activity under one administration and
has or could have regular accounts. Holder of project could
be natural or artificial person.
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2 |
Legal
entity:
It is the legal status of capital ownership of
establishments aiming profit; it includes individual,
joint-liability companies, partnership companies, limited
liability companies and joint-stock companies.
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a |
Individual
establishment:
Establishment owned by one person (natural person),
where no one has partnership in its holding.
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b |
Joint-liability
company:
Company composed of two or more persons and
registered with official contract (each partner is
joint), i.e. guarantor to other partners jointly.
Each of them is responsible absolute responsibility
for company’s financial commitments within the
limits of paid capital, as well as his personal
properties.
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c |
Limited partnership
company:
Company composed of two or more persons and
registered with official contract. It includes two
parties of partners: silent partners and acting
partners. The company could be composed of one
partner of each party. Silent partners are partners
stated by name in company’s contract and they are
responsible limited responsibility for financial
commitments of the company within the limits of
their share in capital, while responsibility of
acting partners is not limited as silent partners in
joint-liability companies.
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d |
Limited
joint-stock companies:
Company registered with official contract, and
composed of party of silent partners and another
party of acting partners, same as Partnership
Company, however share of silent partners in capital
is underwritten shares. Names of these shareholders
are not mentioned in company’s contract and they are
only questioned within the limits of shares value
that they shared in.
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e |
Limited liability
company:
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The following conditions are required to
establish such company:
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Composed of
two or more partners with official contract
and number of partners should not be more
than a number stated in concerned country
laws and mentioned namely in company’s
contract.
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Company’s
capital should not be less than a specific
amount determined by concerned country laws.
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Each partner
is responsible for company’s obligations
within the amount of his share in capital
only.
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The company is
prohibited in general from practicing work
of insurance, banking, saving, receiving
deposits or investing funds for others.
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The company is
established for a specific period that
should be stated in company’s articles of
incorporation.
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The company’s
commercial name should be followed with the
term “with limited liability (W.L.L.)”, i.e.
type of such companies could be known from
its address or commercial name.
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f |
Joint-stock
company:
An approval from the supreme authorities in the
state should be issued for such companies. It has
two types of partners, founder and share holder, and
its capital is composed of shares equal in value
that are placed for underwriting and could be
circulated later. The partners are not questioned
for company’s financial obligation other than the
value of shares they underwritten. The law should
state that company’s capital should not be less than
certain amount and its name usually followed by (
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g |
Special joint-stock
company:
Its capital is composed of equal value shares not
for underwriting and circulation. Underwriting is
for limited number of persons, usually founders, and
responsibility of shareholder does not exceed the
limit of his shares in company’s capital.
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h |
Foreign
establishment branch:
An establishment authorized by the state, which is
considered as a branch of foreign establishment and
usually bears the name of Mother Company. The mother
company undertakes to pay all financial obligations
of the branch in the state in case of occurrence of
any financial obligations in accordance with legal
entity of Mother Company.
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i |
Governmental:
An establishment owned directly by the state,
whether it was related to state’s budget or has
separate budget
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3 |
Ownership of
establishment:
It is meant the sector that the establishment belongs to
regarding ownership.
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a |
Government sector:
Government establishments usually practice
governmental managerial or service activity (i.e.
ministries and departments). These departments are
non-market producers, i.e. produce goods and
services that are supplied to individuals or other
establishments for free or with nominal price
without economic feasibility. These departments
could supply its goods and services to other
government departments.
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b |
Public
sector (government establishments):
It includes establishments that practice productive
activity of goods and services, where the government
owns its capital completely. The government allows
these establishments or companies large amount of
power of disposal, not only in managing production,
but in utilization funds also. These establishments
or companies must be able to preserve its operating
balances and commercial credit, and able to finance
some or all capital formation from its savings,
depreciation reserves or lending.
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c |
Joint
sector (mixed):
The sector that includes establishments that the
government contributes in its capital with another
entity, whether this entity was national or foreign.
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d |
Private sector:
It includes the establishments that are owned by one
individual or group of individuals, whether they
were citizens or non-citizens or whether they were
natural or artificial persons. These establishments
include as well establishments where citizens or
non-citizens participate in its capital and include
joint-stock companies where citizens or non-citizens
own its capital … etc.
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4 |
Main
economic activity:
The activity practiced by the establishment that creates the
largest share of total production value of the establishment
or it is the activity specified by establishment’s owner or
manager.
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5 |
Employment
(employees):
All individuals (citizens or non-citizens) who are related
with work relation to the establishment in exchange for wage
that they receive at the end of payment period (daily,
weekly or monthly) or without wage. Those persons could be
full time or part time employees, males or females or
permanent or temporary employees. This includes absent
persons due sick leave, leave of absence, training courses
or scholarships.
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a |
Owners working in
the establishment:
Holders or capital owners who actually work in the
establishment.
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b |
Unpaid employees:
Owners, relatives or partners who work in the
individual establishment or individual companies
(Joint-liability, Limited partnership or Limited
joint-stock) full or part time. Provided that it is
not less than one third of time and do not receive
regular wage for their work, and employees of
establishment of trainees or experience seekers.
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c |
Paid employees:
Persons employed by the establishment for cash or
in-king wage, whether they were permanent or
temporary (part time employees). It includes persons
absent from work for temporary reasons, such as
leaves of absence or sick leaves.
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d |
Specialists:
Persons obtained university degrees or equivalent in
their field of specialization.
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e |
Technicians:
Persons who directly or indirectly assist the
specialists in research, design, production and
maintenance. The have craftsmanship and sufficient
knowledge in theoretical information in their field
of specialization that enable them to perform their
job, comprehend the reasons why the job is done
vocationally and purposes that work aim to. They
usually bear qualifications in their field of
specialization or have long experience in their
field of work.
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6 |
Compensation
of employees: |
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a |
Wages, salaries and
cash benefits:
Includes all cash payments due to employees as a
compensation for their work before deducting their
share in security and pension funds including taxes
and the like. It also includes all cash payments
that are paid on regular basis (weekly, monthly or
other) including payments by piece and special
allowances for overtime, night shifts, work in
holidays or occasions, work far from their place of
residence or in hazardous circumstances. It includes
as well allowances paid regularly, such as housing
or transport and wages paid for employees that are
absent from work for short periods, such as feasts
and temporary stoppage of production. It also
includes incentives paid to employees in accordance
with incentive regulation as well as commissions and
bonuses received by establishment’s employees.
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b |
In-kind benefits:
Amount born by the establishment of goods and
services that are presented free of charge or for
nominal cost to its employees, i.e. meals including
the ones consumed during business trips, housing
services, lodging, uniforms, car services. It also
includes other durable goods that are provided to
employees for personal use and goods and services
that are output of establishment’s production, i.e.
free travel on board airlines, food products of the
establishment, sports facilities, recreation
facilities, vacations, transport means, car
facilities, kindergartens for employees’ children,
treatment, health and educational services for
employees’ children, fees born by establishment on
behalf of employees, i.e. residence fees, telephone
installation and others.
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7 |
Revenues of
other activities:
All revenues received by the establishment for performing
secondary economic activities other than the main economic
activity, provided that this establishment is unable to
separate requirements of production of secondary activities
from the main activity.
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8 |
Intermediate
goods:
All goods that are used as input of production, excluding
fixed assets, i.e. raw materials, packing and wrapping
materials, fuel, oils, energy and electricity, water, spare
parts, tools, equipment, stationary, publications and
others.
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9 |
Intermediate
services:
All services used that help in accomplishing production,
such as maintenance expenses, transport services, general
transportation, shipping, unloading, rent of equipment and
transportation means and others.
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10 |
Value
added:
Total value of production less total value of intermediate
goods and services (intermediate input).
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11 |
Depreciation:
Decrement (during accounting period) in value of fixed
assets owned and used by producer as a result of
participation in production operation, wear and tear
resulting from ordinary accidents.
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12 |
Taxes on
production and import (indirect taxes):
Compulsory cash or in-kind amounts paid by the establishment
to the government. Taxes imposed on producers (for goods and
services) regarding production, selling, purchasing or use
of goods and services that are usually born on production
cost and also includes customs fees.
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13 |
Subsidies:
Current payments at no cost presented by government
entities, including nonresident government entities, to
projects according to levels of its production activities or
quantity and value of goods and services that it produces,
sells or imports, they are yields for resident producers or
importers. In case of resident producers, it could be
designed to affect their level of production, prices of
selling of their outputs or remuneration of establishment
units that work in production field.
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14 |
Operating
surplus:
It equals to total product on the basis of product value
less intermediate consumption (Intermediate goods and
services) on the basis of purchaser cost, compensation of
employees, fixed capital depreciation and net indirect taxes
(indirect taxes less production subsidies).
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15 |
Fixed
assets:
It is the durable produced assets that are themselves used
repeatedly or continuously in process of production for a
period more than one year. It includes land, mines reserve,
forests and other similar tangible assets that could not be
reproduced. It also includes facilities, machinery,
equipment and agricultural and animal assets that could be
used repeatedly or continuously, i.e. productive fruit trees
and reproduction, fattening, milking and towing animals. It
includes as well intangible assets such as computer programs
and original artwork that are used in production.
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16 |
Fixed
capital additions during the year:
It is represented in the value of amount spent during the
year on fixed assets of machinery, equipment, buildings,
land, means of transport, furniture and other similar
tangible assets in order to be used in production of goods
and services.
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17 |
Stock:
Market value of stock of final and incomplete goods in a
certain time. It includes as well products that are produced
by the establishment, which still keep them before entering
more alteration on them, sell them, supply them to other
establishments or use them in other way. In addition to that
it includes products possessed by the establishment in order
to be used as intermediate consumption or re-sell them
without further alteration.
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18 |
Profit of
shares:
Shape of property income matured for shareholders as a
result of placing their money at disposal of companies. |
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