Private ownership in the economy.

Where there is economic activity, there is always a problem with the property.People constantly question arises: who is the owner of the factory, factories, land, real estate, spiritual wealth?

Private ownership in the economy - it is nothing like the relationship between people concerning the material basis of any economic activity or means of production.He who is the owner of the material factors of production (capital and land), is manager of the effect sought by the business.Private property is now the basis of market economy.

Private property is nothing else than the consolidation of the right to control the good things of life, and economic resources of certain people and their groups.As part of this concept, objects such as land, capital, end products, income and other, are personalized, which means that they have a specific owner.Every citizen has the right to do with his property activities which are not contrary to various legal acts and the law in general.A citizen may transfer the right

of ownership, use and disposal of its assets to others and remain owner to dispose of his property to them, give it as collateral and dispose of it in any other way.In addition, generally every person has the right to have private property.

Private property is divided on that, which includes the means of production rights, worker's own (it are craftsmen, farmers and other people who live by their labor), and one that is imposed on the material conditions of production of those people who use the labor of others.The second type of private property are usually the people who own large farms and applying labor impressive number of employees.

Private property has several forms:

1. Individual - family or individual ownership.Companies that are in a form of ownership, market economy predominate.This form is represented in small business (small shops, gas stations, cafes, farms).It is divided into the personal, which includes objects not yielding any income (commodities) and to private, it includes those objects that generate income (factors of production).

2. Joint-stock - it's about a group of private property, it is created only by the issue and subsequent sale of securities (bonds and shares).Such action is called security, which shows exactly what has made a certain amount of money in the total capital stock, it gives its owner the right to make a profit - dividends.In addition, he may participate in the distribution of surplus stock if the stock will be eliminated.Bond called such security, which says that its owner has provided loan stock company.She gives him the right to receive a fixed income and is subject to redemption at any given time.

3. Co-operative and collective - we are talking about a joint (common) share property.She suggests that the assignment is the collective nature of the group, as well as shared use, possession and disposal of the results and the factors of production.

Private property has its drawbacks and advantages.Its characteristic features - a spontaneous development, high efficiency.This property stimulates entrepreneurship, initiative, responsibility towards work.But there she and negative traits - operation, the pursuit of profit, the spontaneity.