THEORETICAL ANALYSIS OF THE INTERPRETATION OF THE CONCEPT OF “FINANCIAL ACTIVITY OF THE ENTERPRISE”
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 5, Issue 67
Abstract
The article provides a thorough theoretical analysis of the interpretation of the concept of “financial activity of enterprises” in the transformational conditions of entrepreneurship development in Ukraine. The essence and content of the financial activity of the enterprise are analysed on the basis of analysis of the concepts that make up it – “finance” and “corporate finances”. The general definition of “finance” is proposed, namely, the product of the existence of a political organization of society and commodity-money relations, characterized as a set of economic relations that arise between the state, individuals, and legal entities regarding the formation, distribution, and use of funds for the purpose of creation of financial resources for the development of society. It is revealed that most domestic researchers use the systematic approach in the process of interpreting the scientific definition of “corporate finances”, that is, they consider the enterprise finances as an integral “structure”, which consists of autonomous interconnected elements or subsystems. The analysis of existing theoretical approaches of domestic scientists concerning the understanding and interpretation of the concept of “financial activity of the enterprise” is analysed and it is determined that among the domestic scientists a widespread approach is the consideration of the term “financial activity of the enterprise” in a broad and narrow sense. In a broad sense, under the financial activity of the enterprise, scientists understand a set of functional tasks performed by the financial services of the enterprise and associated with financing, investment activities, and financial support of the operating entity. In the narrow sense, financial activity is seen as a process of financing the enterprise. The purpose and main tasks, which appear in the process of carrying out financial activity at the enterprise, are considered. A thorough theoretical analysis of the interpretation of the financial activity of the enterprise showed that the essence and content of the concept of “finance” are viewed from different perspectives by domestic scientists, primarily as a historical, economic, and material category. Therefore, we propose a general definition of this concept, namely, finance is a product of the existence of a political organization of society and commodity-money relations, characterized as a set of economic relations that arise between the state, individuals, and legal entities regarding the formation, distribution, and use of funds for the purpose of creation of financial resources for the development of society. Also, the article reveals that many domestic researchers in the process of defining the term “corporate finances” rely on the application of a systematic approach, that is, they consider the finances of the enterprise as an integral “structure”, which consists of interconnected elements. The study of the essence of the concept “financial activity of the enterprise” showed that this scientific category is theoretically and methodologically debatable in domestic science because the financial activity is a polyaspect concept used in economic science, management, and in many fields of law. Therefore, in the article, the consideration of the interpretation of the concept of “financial activity of the enterprise” is carried out in two aspects: legal and economic and managerial.
Authors and Affiliations
V. A. Petrenko, Yu. Yu. Hurbyk, M. V. Salnikova
Keywords
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- EP ID EP562322
- DOI 10.32782/2520-2200/2018-5-30
- Views 135
- Downloads 0
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