INTRODUCTION When it comes to business and production activities, people often mention its effectiveness. Productivity - quality - efficiency is the goal of striving for advanced production, a measure of qualifications in all aspects of the national economy as well as for each production unit. A production unit is a cell of the economy in general, the strong development of each cell will create the growth of the economy. In our country, State-owned enterprises are the direct creation of material wealth and accumulation of capital for society, it plays a key role in the process of building and developing the country in line with the socialist orientation means.
In the current period, our country's economy is in a great transition from the central planning mechanism to the macro-regulated market mechanism of the State, fully subsidized by the State to produce business. So far, these units have to account for profit and loss business, requiring businesses to make great efforts to survive. On the other hand, in the context of fierce competition in the market economy between enterprises of different economic sectors, enterprises have constantly accumulated capital to develop and invest to expand their business. This can only be done when the business operation of the highly efficient business earns a lot of profits.
Profits are now considered as one of the most effective economic leverages to strongly stimulate businesses' production and business activities. Profit not only reflects the efficiency of production and business in the market economy condition but it is also an important financial source to carry out reproduction and expand production and business activities and improve the lives of people. labor in the business. Stemming from the great role of profitability of production and business activities, during the internship at Hanoi grocery import-export company (TOCONTAP) with the enthusiastic help of teacher Nguyen The Vinh and other staffs working in the Accounting and Finance department of my company have completed the graduation thesis with the topic "Profits and profit enhancement solutions at TOCONTAP Sundries Import Export Company".
Within the time allowed to study and research, my dissertation was completed but could not avoid the shortcomings and limitations that required further research. Therefore, I look forward to receiving the instruction from the teachers, along with all the readers to help me complete the thesis better. In the course of completing this essay, I was guided by the enthusiastic teacher Nguyen The Vinh and the support and facilitation of officials in Hanoi grocery import-export company (TOCONTAP) With deep gratitude: I would like to express my sincere thanks to Ms. Nguyen The Vinh and the officials of Hanoi Sundries Import Export Company (TOCONTAP) in the past time for helping me with all my heart to complete this thesis.
TABLE OF CONTENTS LIST OF FIGURES AND TABLES LIST OF ACRONYMS Chapter I: General arguments about profitability. Profits of an enterprise in a market economy. Notion: An enterprise in a market economy is an economic organization organized to conduct business and production activities in accordance with the law for profit. Depending on the classification criteria, there exist different types of enterprises, according to the form of capital ownership, enterprises are divided into 3 types: State enterprises Private enterprise Mixed ownership business State-owned enterprises: are economic organizations with capital established by the State and organized production and business activities to serve the state's socio-economic objectives.
A private enterprise: is an enterprise established, managed, and solely responsible by all of its assets with the debts of the enterprise. Mixed-owned enterprise: is an enterprise in which the owner is a collective of individuals or organizations. These members conduct production and business activities, share profits and take responsibility for the company's debts as part of their capital contribution. This classification specifies the relationship of ownership of capital and assets of different economic sectors, which is the basis for dividing economic efficiency by contributed capital and also the basis for the state to prescribe the main regime.
Economic policies, development orientations for each type of enterprises. Characteristics of businesses in a market economy. In a market economy, there are many different types of businesses, so there are also different characteristics. However, enterprises generally have the following characteristics: All businesses are constantly seeking ways to improve production and business efficiency.
Enterprises are autonomous units in business and financial autonomy. Business activities of enterprises are governed by the laws of the market economy such as the law of competition, the law of supply and demand, the law of value. All economic benefits of the business are distributed fairly. Profit of the enterprise.
Notion: - Profits are a quality indicator to evaluate the economic efficiency of businesses in production and business activities. That is the final financial result after a process of conducting business and production of the business. - In the term of trade (The langugue of trade): Profit is the net income generated by the production or sale of goods and services. Means the remaining amount for the entrepreneur after paying all capital (interest), land (rent), labor (including administrative costs, wages, wages), raw materials crude, taxes and depreciation.
If the business is poor, profits can be negative and in that case they turn into losses. - From an enterprise's perspective, profit is essentially the difference between revenue and the total cost of production and business that businesses spend to get that revenue in a given period. Accordingly, profit is determined as follows: Profit = Revenue - Cost - Tax - The origin and nature of profit: The study aimed at elucidating the origin and nature of profits was conducted by economists from the early years of the 18th century. Although, nearly 200 years later, the origin and nature of profits was only K.
Marx clarified, he was also the one who exposed the exploitative nature of capitalism towards hired workers. Previously the schools of economics and the thinkers of economics had continually studied the origin and nature of profits but could not come up with a clear explanation that profit was being produced. The first person to study that profit was Adamsmith, who, according to him, "Profit is a deduction from the value of products made by workers", the source of profit is due to the entire investment capital spawned in both field of production and circulation. Unlike Adamsmith, David Ricardo said, "Profits are the excess value out of the value of goods created by workers always greater than the amount of wages that workers are entitled to and the difference is profit".
Thus, David Ricardo's ideas have improved more than Adamsmith's arguments, he pointed out that the source of profits is the "excess value" in addition to the costs paid to workers and the profits from created by workers, not by all investment capital. In the 19th century, the source of profit was properly understood through the analysis of K. Based on scientific theories and scientific methods, K. Marx pointed out that participating in the process of creating goods value has 3 components: immutable capital, variable capital and surplus value residual.
Immutable capital is a part of value that exists in the form of means of production (factories, machines, raw materials, fuels, auxiliary materials, etc.) whose values are preserved and transformed. integrity into the product, no change in quantity during production (symbolized c). Variable capital is the part of capital that exists in the form of labor generated and unpaid by workers, in other words, the capital division used to purchase labor that is not reproduced. the value but through the abstract labor of the employee increases, ie the change in quantity (symbolized v).
Surplus value is the value of the excess of the value of labor goods created by the employee and taken over by the capitalist (symbolized as m). From this we find that participating in the creation of surplus value has two elements: invariant capital and volatile capital. If the symbol of the value of goods produced in a capitalist enterprise is Gt, then Gt = c + v + m (1) - the actual labor cost of society to produce goods. But for the capitalists to hide their exploitation, they thought that the surplus value was not created by the labor of the workers but it was caused by the capital loss created, that is, c and v, c + v create.
From that point of view, capitalists argue that capitalist production costs generate profits, not the (v) division that generates surplus value. If the symbol of capitalist production cost is K (K = c + v) then we have the value of goods: Gt = K + m (2), from which we have K = Gt-m, that gives see capitalist production cost is always smaller than the actual cost of society to produce goods. When c + v translates into capitalist production costs, for the capitalist, the surplus value manifests itself in the increase in the appearance of capitalist production costs that the capitalist obtains. The surplus value when compared to the total capital advance is in the form of profit.
If the symbol of profit is p then from (1) and (2) we have Gt = K + p or the value of capitalist goods production cost + profit. The essence of profit is the value of the surplus created in production, or the value of the surplus is the content inside, is the basis of profit, and profit is the external expression of m. In fact, in terms of quantity, the basis of p is m but more or less the amount of p depends on the market price. When price equals value, p = m When the price is greater than the value, then p > m When the price is less than the value then p < m.
Thus, we can see that p can be greater than or equal to or less than m and regulated by the supply-demand relationship in the market. If the supply is greater than the demand, then the price of goods is smaller than the value of goods, so the profit earned by the business is smaller than the surplus value. Conversely, when the supply is smaller than the demand, the price of the goods is greater than the value of the goods and therefore the profits are greater than the surpluses. Marx also pointed out the conflicting relationship between profit and salary.
Lowering wages while constant commodity prices cause profits to rise and vice versa wages to rise while commodity prices do not rise will reduce profits, indicating an opposition to economic benefits between capitalist and hired workers. Above is the analysis of the origin and nature of profits in the form of capitalist production, and under the socialist production base, the profits still retain the origin and nature? The answer will be: Profits are still generated by the department (v) i. workers created but different in that: under the capitalist regime, the means of production are capitalist, so the profits are made in the pocket capitalism in its own way, and under the socialist regime it is based on the public ownership of means of production so after paying wages for employees will use the profits to supplement the business capital of the enterprise, the rest will be distributed to the fund with the purpose of continuing to maintain production and business activities of the business and at the end. The same is to serve the interests of workers.
Conclusion: Through the above analysis, we can affirm that the nature of profits in production and business is surplus value, a form of variation of surplus value - the result of unpaid labor, is exploitative relations in the Techmart society. The source of profit is created by employees, it is the excess value of wages made by employees.