2. FINANCES OF ENTERPRISE Lecture

3. Plan of the lecture 1. The concept and essence of finance 2. Features and functions of finance 3. The financial resources of the company

4. 1. 1. The concept and essence of finance The subject of the science of finance is a specific system of economic relations, related to the formation, distribution and use of centralized and decentralized funds of funds (government, businesses, organizations and other entities) in order to perform the functions and tasks of the state and to ensure the expanded reproduction.

5. Financial relations - a set of economic relations among the states, companies and organizations, industries, territories and individuals in relation to the movement of funds.

6. The need to finance in terms of commodity-money relations, due to the fact that the finances needed for allocating the cost of the social product. Only with the help of finance category by this process.

7. Finance - it is not money! The money primary - secondary finance.

8. Thus, finance - it is always a monetary relations, but not any money relation - always financially.

9. Based on the above, we can formulate a general definition of finance. Finances are economic relations connected to form longer, distribution and use of centralized and decentralized funds of funds in order to carry out the functions and tasks of the state and to ensure the reproduction considered.

10. 2. FEATURES AND FUNCTIONS OF FINANCE Features of finance:  bank funds issue a fixed term;  under certain conditions and subject to repayment;  funds in the financing granted for specific purposes.

11. Finances are different from money, both in content and in the functions they perform. Money - it is a universal equivalent, with which primarily measured labor costs associated producers, and finance - is an economic tool distribution and redistribution of the gross domestic product and national income, a tool of control over the formation and use of funds.

12. Two main functions: distribution and control.

13. The distribution function is manifested in the distribution of national income.

14. The ultimate goal of the distribution and redistribution of national income and GDP committed through finance, is to develop the productive forces, the establishment of market economy structures, the strengthening of the state, providing high- quality of life of the population.

15. The control function is shown in the control over the distribution of GDP by the relevant funds and spending them on purpose.

16. Instrument for implementing the control of the finance function is acting as financial information. It is enclosed in financial terms available in accounting, statistical, and operational reporting.

17. 3. THE FINANCIAL RESOURCES OF THE COMPANY The financial resources of the company - is cash generated during the formation of the company and is staffed by industrial and economic activity due to the sale of goods and services, the organization of retired assets, and by attracting external funding.

18. The main source of funding are existing company (profit) from the main and other activities as non-operating.

19. Financial resources can be mobilized in the financial markets through the sale of stocks, bonds and other securities issued by the company, dividends on securities of other companies and the state, income from financial operations, loans.