What are concerns?

Alexey Ganzenko
Alexey Ganzenko
February 26, 2013
What are concerns?

Concern is a more popular designation of financial-industrial groups of companies, for participants of which it is typical to preserve economic and legal independence, with simultaneous control from the main financial structures. Under the “roof” of the concern, the market and economic potential of its participants are combined. The main advantage of the concern is the concentration of resources of this kind.

The concept of “concern” is borrowed from the German language, although for the first time people learned what concerns are not in Germany, but in Florence, where the first such association was created. True, it was not yet called a concern - the concept was fixed later. The first appeared exchanges similar to modern, gradually banking activities intensified, and it became profitable for private enterprises to merge.

It is customary to distinguish between horizontal, vertical and mixed concerns. Vertical concerns unite firms covering a full cycle, starting with the procurement of materials and ending with the sale of products. Horizontal companies combine similar firms with different clientele.