Features of organization of finance of enterprises of different patterns of ownership

     Introduction.

     In the developed market economy three leading managing subjects operate: households, the enterprises of various patterns of ownership and the state which represents itself as the collective businessman. The enterprises of various organizational-legal forms and their association are the basic managing subjects who concentrate the most part of the public capital (property).

     Any managing subject it is possible to consider as the certain system initiating streams of resources and reformative them in production or services, the offer on the market which realization provides achievement of the main objectives defining and justifying the fact of creation of the given subject. Financial resources play thus a huge role. At the moment of the enterprise basis, and also in the first years of its functioning priority value has investment aspect of management of the finance; further large value is got by questions of optimization of financing of current activity, in particular the analysis and forecasting of monetary streams, efficient control financial structure of the company, etc.

     The organization of financial streams and management of them depend on many factors, among them: the business type, the size of the enterprise, its organizational structure of management, etc. the Role and principles of the organization of financial streams, volumes mobilized resources, degree of security of interests of creditors sharply differ in the commercial and charitable organizations, in the financial and building companies.

     Finance of the enterprises of various patterns of ownership in aggregate is a compound link of a financial system almost any country. There the financial streams reflecting created gross national product, subject to redistribution through budgetary system in industrial and social spheres, sphere of house economy are formed further, etc.

     Finance of the enterprises represents system of the economic relations connected with formation and use of monetary funds and accumulation on the nation-wide purposes, financing of expenses of the enterprises.

     Features of the finance of the enterprises are defined by the organizational-legal form; pattern of ownership; in activity scales; spheres of capital investments of the enterprises.

     Depending on patterns of ownership the finance of the enterprises subdivides into the finance of the state enterprises and the finance of subjects of non-state patterns of ownership (private, cooperative, joint ventures).

     The civil code to an organizational-legal sign divides the enterprises and the organizations on commercial and noncommercial.

     The theme urgency consists that the current legislation provides creation of various types of the managing subjects which organizational-legal form leaves a certain mark on principles of management of the finance.

     The purpose of this course project is to consider features of the finance of the enterprises of various organizational-legal patterns of ownership. For object in view achievement following problems have been generated: to open essence and functions of the finance of the enterprises, and also features of formation and change procedure share (authorized) capital at the enterprises of various patterns of ownership; to show ways of functioning of securities and profit distribution. At performance of the given work sources of following authors have been used: A.A. Volodina, M.G. Lapusty, V.V. Ostapenko, N.A. Safronov, V.V. Kovalev, A.N. Gavrilova, N.V. Kolchinoj.

 

     Chapter 1. Essence and functions of finance of enterprises.

     1.1 Essence of finance of enterprises.

      The well-known Scottish economist A. Smith (1723-1790) asserted that work is valid, and money - a nominal measure of value. If earlier the universal equivalent role was carried out by gold in the conditions of the socialized manufacture this role is played by the credit (paper) money possessing ability of regulating of costs.

      The money underlying the finance, is a special goods, a universal equivalent. Money has arisen with the advent of the market, a commodity exchange, spontaneously having allocated from set of all goods, at the expense of the main property: in the market they have connected interests of the seller and the buyer. Money, serving a circulation of the goods and the capital, have acted at an initial stage and as result of this circulation.

      The social feature of money based on their economic properties, is a fetishism of money, i.e. management of behavior of people, it is the form of assignment of results of work.

Money is a basis of market relations. Market relations is, first of all financial relations when participants of the market assume to earn money and to use them on the various purposes, creating own corresponding monetary funds. In the conditions of commodity manufacture money carries out a role of economic control in the course of manufacture and distribution.

      Finance - the objective economic category of market economy playing the leading part. The finance is certain economic relations which arise while movement of money, i.e. transfer of money someone to someone, for example finished goods payment, payments of taxes in the budget begins, payment of dividends, reception and repayment of credits, etc. Hence, these economic relations are monetary, it - first; secondly, as a result of movement of money there are the monetary streams which are a part of financial activity of the enterprises, and, thirdly, as a result of movement of money at the enterprises the various monetary funds which are object of a finance administration are formed (Scheme 1). 
 
 
 
 
 
 
 
 

 
 

 

 
 
 
 
 

 

 
 

Scheme 1 Finance of the enterprise 

     Hence, the finance of the enterprises is the economic, monetary relations resulting movement of money and monetary streams formed on this basis, the created monetary funds connected with the functioning at enterprises.

     Finance of the enterprises - a basis of a financial system of the state as the enterprises are the basic link of an economic complex. The condition of the finance of the enterprise influences security money of nation-wide and regional monetary funds. Dependence here a straight line: the more strong and more stable financial position of the enterprises, the more provided nation-wide and regional monetary funds, are more full satisfied with that welfare and other requirements. (1,105) 

     1.2 Financial relations.

     Finance - specific sphere of the economic relations defined by movement of money. In their basis the processes resulting creation, distribution, an exchange and use of a total internal product and the national income lie.

     All financial relations of the enterprises can be united in four groups:

• With other enterprises and the organizations;
• In the enterprise;
• In associations of the enterprises and the organizations;
• With financially-credit system of the state.

     Financial relations with other enterprises and the organizations include relations with suppliers, buyers, the construction and transport organizations, mail and telegraph, the foreign trade and other organizations, customs, firms of the foreign states. It is the greatest on volume of monetary payments group. Relations of the enterprises are with each other connected with realization of finished goods and acquisition of material assets for economic activities. The role of this group is primary, as in sphere of production of goods the national income is created, the enterprises receive a gain from realization of production and profit. The organization of these relations makes the most direct impact on the end results of industrial activity. The main problem of these relations - non-payments.

     Financial relations in the enterprise include relations between branches, shops, departments, brigades etc., and also relations with workers and proprietors. Relations between enterprise divisions are connected with payment of works and services, distribution of profit, circulating assets, etc. Their role consists in an establishment of certain stimulus and a liability for qualitative performance of the accepted obligations. Their volume is defined by degree of financial independence of structural divisions. Relations with workers and employees are payments of a salary, awards, grants, dividends under actions, material aid, and also collecting of money for the caused damage, deduction of taxes. It is thus very important, that workers of divisions received that they earn.

     Financial relations in associations of the enterprises and the organizations are relations of the enterprises with the higher organization, in financial and industrial groups, and also holding. Financial relations of the enterprises with the higher organizations make relations concerning formation, and uses of the centralized monetary funds which in the conditions of market relations are objective necessity. Especially it concerns financings of investments, replenishments of circulating assets, financings of import operations, scientific researches, including marketing. Intrabranch redistribution of money resources, as a rule, plays an important role a returnable basis in management of the finance and promotes optimization of means of the enterprises.

     The Financial and industrial group is an association, on the one hand, the organizations having free money resources (banks, financial and investment funds etc.), and with another - the enterprises and the organizations, feeling requirement for investments and other extra means. The purpose of such association - development of the got directions of industrial production; association of financial efforts for development and manufacture support; reception of the maximum financial result. Here can be and the centralized monetary funds, and the commercial credit each other, and simply financial help. The same concerns also the relation between the enterprises in the conditions of holding. The holding is a corporation or the joint-stock company supervising affiliated joint-stock companies by means of possession by controlling stocks of their actions. Such way the holding exercises strategic administration, carries out uniform to the policy in the field of the general interests.

     Relations with financially-credit system of the state are diverse. This system includes following links: budgetary, credit, insurance, and also stock market.

Relations with budgets of various levels and with off-budget funds are connected with transfer of taxes and deductions.

The tax system of Kazakhstan is imperfect and doesn't promote normal industrial activity. World experience shows what to lower high rates of inflation it is possible only through support of manufacture and development of investments. On it the credit and customs policy should be directed basically tax, and also. In particular, in many countries the certain part or all gain of manufacture isn't assessed with taxes. It is favorable both to the enterprise, and the state as taxes from such enterprises arrive in full, and in a year they sharply increase. Proficiency of the budget at all doesn't mean that all is good, on the contrary: a science is not enough financed, and without it stable growth is impossible. A salary of state employees and pension at very low level, and without it stable sufficient demand for the domestic goods, development and economy growth is impossible.

     Financial relations of the enterprises with banks are under construction in the relation as storages of money resources in banks, the organizations of clearing settlements, and receptions and repayments of short-term and long-term credits. The organization of clearing settlements makes direct impact on a financial position of the enterprises. The credit is a source of formation of circulating assets, expansions of manufacture, its rhythm, improvement of quality of production, promotes elimination of time financial difficulties of the enterprises. Banks render now to the enterprises a number of so-called nonconventional services: leasing, factoring, forfeiting, a trust. At the same time there can be the independent companies specializing on performance of specified functions with which the enterprises have direct relations, passing bank.

     Now in relations of the enterprises with banks there is a number of serious problems. Practice of clearing settlements is primitive: an advance payment, barter, cash, the big non-payments. The credit very expensive, therefore its relative density at formation of circulating assets of the enterprises very low (on the average no more than 10 %). The long-term credit for financing of investments is insufficient. Nonconventional bank services also had no serious development.

     Relations with an insurance link of a financial system consist of transfers of means to social and medical insurance, and also insurance of property of the enterprise.

     Financial relations of the enterprises with stock market assume operations with securities. The stock market in Kazakhstan is developed insufficiently. (5, 247) 

     1.3 Functions of finance of enterprises.

     Finance of the enterprises carries out three functions:

• Providing;
• Distributive;
• Control.

     Providing function.

     Providing function of the finance of the enterprises assumes that the enterprise should be completely provided in the optimum size by necessary money resources at observance of very important principle: all expenses should be covered by own incomes. The time additional requirement for means becomes covered at the expense of the credit and other extra sources. Thus optimization of sources of money resources - one of the main tasks of management financial difficulties which can lead to serious consequences arise the finance of the enterprises as at surplus of means efficiency of use decreases, and at a lack-. Besides, optimization of sources of money resources - one of ways of reception of the highest financial result.

     Distributive function.

     Distributive function of the finance of the enterprises is closely connected with the providing. Distributive relations also seriously influence the end results. The distributed gain from production realization partially goes on compensation of expenses of the enterprise (the consumed means of production and a salary), and its other part represents profit. The profit is distributed between the enterprise and the budget. The financial mechanism of these relations includes:

• Dependence of a salary on utility of made production and receipt of payments for it;
• Well-founded distribution of profit between the enterprise, trade and banks at which the most part should get to the manufacturer;
• An objective reality of specifications of distribution of profit between the enterprises and budgets of various levels, and also the off-budget funds, assuming long duration and stability;
• Validity of deductions on accumulation (manufacture development) and consumption;
• Sufficiency of means for social needs, for research works, on a professional training and other purposes.

     Control function.

     Control function of the finance of the enterprises is connected with any application of stimulus and sanctions, and also corresponding indicators. If the enterprise in due time pays off with the budget, banks, suppliers, it thereby improves the end results, raises production efficiency and uses of means. Otherwise it is compelled to pay penalties, fines, penalties, there is an intense financial position, the end results worsen. One of forms of financial control is use of some financial indicators. The main thing from them is stable presence of means at the enterprise. In it interaction of control function of the finance with first two is shown; it is demonstration of financial control by currency. Other financial indicators concern: debts to suppliers, bank, the budget, workers, security of circulating assets corresponding sources, losses, liquidity, solvency, etc. (2, 64)

     Financial control by means of financial indicators is connected with presence of certain indicators of financial and economic activity. In the simplified variant these indicators the following: presence of means on accounts in banks, debts to suppliers, banks, budgets, workers on a salary. When indicators reflect debts increase, hence, and insolvency of the enterprise. At the same time the same indicators exists much enough, and they show various aspects of activity of the enterprise. It is possible to present them in the form of following groups of indicators:

• A property condition (structure of actives, a net wealth, factor of real cost of property of industrial appointment);
• Liquidities and solvency (factors of liquidity, security own means, coverings, etc.);
• Capital structures (factors of an autonomy, a parity of extra and own means, the financial lever, etc.);
• Conditions of circulating assets and types of financial stability (pure working capital, structure of sources of circulating assets, surplus or a lack of circulating assets);
• Turnover of means (quantity of turns, duration of one turn, relative and absolute liberation of circulating assets);
• Rationing of circulating assets (norm in relative sizes, specifications in money terms; current, insurance, transport and technological stocks; factor of increase of expenses);
• The administrative account (variables and constant expenses, marginal income, the relative income, the transfer relation - the operational lever, a break-even point, a safety zone);
• Profitability (production, sales, actives, own means, etc.);
• Monetary streams (inflows and outflows of the means, the resulted cost, the rate and factor of discounting, etc.);
• Investment activity;
• Other indicators.

     Thus, control function of the finance allows to reveal, first of all, results of work of the enterprises, lacks of their activity, and then to take necessary measures on position improvement.

     Control function of the finance at nation-wide level is shown in the organization of monetary streams, in timely formation of the centralized monetary funds both the most rational and their economical use, in creation of certain conditions for sphere of production of goods.

     In the conditions of modern so-called market economy the finance carries out within the limits of control function important enough minorant function connected with counteraction to legalization (washing up) of incomes, received by a criminal way. Financial control here in a greater degree carries administrative, instead of economic character. Necessity of its strengthening has been caused by considerable growth of the specified phenomena. (3, 315)

 

     Chapter 2. Features of organization of finance of medium and large business.