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Integration Processes As Prerequisite For Improving Business Entities Efficiency

Table 2:

Organizational form of integrational unification Advantages Disadvantages
Holding A single scientific and technical and economic policy for all participants.Broad participant autonomy in production activities The inability of using this form in a number of economy sectors (for example, in agriculture)
Financial industrial group (FIG) Ability to maintain existing production links.Development prospects of financial relations of participants.Reducing production costs by consolidating assets.Increasing resource efficiency.Reducing the environment negative effects. Assessing problems of each participant contribution to the overall result and the distribution of income received.Monopolistic nature of cash flow control.
Association The voluntary unification nature. Preservation of economic independence.Ability to exit the union without agreement with other members. The narrow association focus.Lack of capital association.
Consortium Target unification nature (for a specific project implementation). Activity termination after reaching the goal.
Cartel The conclusion of mutually beneficial agreements on prices, regulation of production volumes, markets.Strengthening competitive position in the market. Contributes to the market monopolization.Conflicts with the basic principles of the antimonopoly legislation.
Syndicate Management centralization of the participants commercial activities.Lack of problems with product sales. The inability to combine financial and industrial capital.
Trust Equitable profit distribution in accordance with each participant contribution. Loss of legal and economic independence.Lack of centralized investment financing sources.
Concern High level of co-production.Combining the participants’ property.Centralized control system. Restriction of participants’ independence.
Pool center Expenses and profits distribution according to previously concluded agreements. Temporary association nature.
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