Business firms associations and risk management peculiarities

In recent decades, the world is an intensive process that leads to rapid changes in business environment and activities of economic agent. In these conditions, the functioning of enterprises inevitably involves risks that is attempted to be diversified. Possibilities of business compounds are often used for these goals. Incorporations and acquisitions are being used in the business more often as the methods for implementation of strategic business decisions. The motives for incorporations and acquisitions may be very different, but always a general principle remains - the value of incorporated enterprise must be higher than the total value of single enterprise. However, business incorporations, which could be economically profitable and successful, often lose due to poor implementation of incorporation; others fail due to wrong assets and liabilities, such as circulationg asset, costs for business reconstruction, or even due to incorrect assessment of quality assurance costs of defective product. This article discusses main types of business incorporations and the motives of their formation. Effects of diversification and ways of implementation are discussed on the analysis of examples of Lithuanian business incorporations