PROPERTY AND ITS USE WITHIN BUSINESS ACTIVITIES OF REGIONAL SELF-GOVERNMENT AUTHORITIES IN SLOVAKIA
Journal Title: Przedsiębiorstwo & Finanse - Year 2014, Vol 7, Issue 4
Abstract
Property ownership is the basic precondition of the regional sector development; it facilitates high-quality provision for the public property, but at the same time it enables self-governing regions to engage in their own business activities. The objective of the business activities in this case is not achieving a dominant position, but the property evaluation in such a way that the supplementary finances are generated for the budget and used for further development of the self-governing region. The property situation of the self-governing regions can be deducted not only on the basis of the analysis of the structure of their property and sources of their financing, but also from the mutual relations between the self-financing rate that expresses the ability to cover the usual costs with the region’s own earnings and between the rate of property coverage with its own sources. The self-financing rate of individual self-governing regions in the SR proves that the self-governing regions are not able to finance their own needs and are dependent on grants from the state budget or other financial sources; therefore, they should preferably focus their activities on acquisition of the supplementary earnings, including the earnings from the property ownership or earnings from the business activities. The survey results also indicate that with a growing volume of non-current assets (i.e. also its proportion in the total assets of the self-governing region) also the value of earnings from the ownership thereof was growing. Within individual self-governing regions, however, the property is not used for business activities in the same extent and that is particularly where we see the possibilities for improvement.
Authors and Affiliations
Slavka Sedláková, Zlata Vaľovská
Keywords
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