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. |