The principle of common economy is based on the search for an alternative both to capitalism with its free-market economy and to socialism with its planned economy.

This company target of common economy brought the cooperative movement and the mechanism of organizations on mutuality in the bank, housing, and publishing trade on the way.

Examples:

Bank for social economy

COOP

New homeland

People welfare service

Raiffeisen banks/loan banks

Cooperative housing companies

Publishing house cooperatives

taz, the daily paper publishing house cooperative EEC.

In addition, the municipalities work according to the principle Gemeinwirtschaftlichkeit.Das have the following disadvantages:

The costing hitting a corner principle where no additional incomes to be obtained must

overall public subsidies for different projects

Administration of the municipality according to the principle of the liquidation-oriented Kameralistik instead of after an success-oriented double record keeping.

Distinction between administrative and fortune household

The yearly principle (financial year)

The acquisition-economical principle

On it the municipalities also "„count themselves "“, change themselves ever more municipalities over to shown in the balance thinking, and depend on the acquisition-economical principle (see enterprise).

This principle following the maximization of profit is aimed at, thus as large a difference between the expenditure (costs) and the yield as possible (proceeds).

If now the profit is set in purchase to the size of causing it, this is frequently the Kapitaleinsatz, then one measures profitability or Rendite.Das winning vines then by profitability props replaced.

The determination of profitability the success size always becomes (e.g. Profit or cash flow) in relation to the base factor (e.g.: Principal one or conversion) set. (Formula: Profitability = success size/base factor)

For this there are three possibilities:

1. Own and/or total capital profitability own capital funds profitability = profit/own capital funds total capital profitability = (profit + Fremdkapitalzinsen)/total capital
2. Turnover profitability turnover profitability = profit/sales profits
3. Return on Investment (ROI)

See

• Comrade
• Cooperative
• Cooperative theory
• Social movement
• Enterprise

Articles in category "Common economy"

We found here 36 articles.

Related Websites

We found here 3 related websites.

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