FACTOR AFFECTING FINANCIAL INSTITUTION

Factor Affecting Financial Institution

Factor Affecting Financial Institution

Introduction

Given that the company is both the subject and object relations in a market economy, and the fact that it has a variety of opportunities to influence the dynamics of the various factors, the most important is their division into internal and external. The first is directly dependent on the organization of the enterprise, the latter are external to it, and they change with little or no power over the will of the company. This division and should be guided by modelling the production and economic activity, and trying to manage financial stability by implementing a comprehensive search for a backup in order to improve production efficiency.

For the stability of the company is very important not only to the total amount of costs but also the ratio between fixed and variable costs.

For the development of such a system as a medium, it is necessary to become a member, to join the process and technology of its existence and development, acquiring links, be flexible, modular organization to overcome the threats and to share the risks and therefore can be identified another factor that affects the financial stability and diversification of activities (Savona, Kirton & Oldani, 2011, 53-88).

Another important factor to financial stability, which is closely associated with the types of products (services rendered) and production technology, is the optimal composition and structure of assets, and the correct choice of strategy management. Sustainability of the enterprise and the potential business performance is largely dependent on the quality of management of current assets of how much working capital is involved and what it is, what is the value of stocks and assets in the form of money, etc. Keep in mind that if the company reduces reserves and liquidity, it can start up more capital into circulation and, therefore, make more profit. But at the same time increases the risk of insolvency of the enterprise and production stop due to lack of stock. Art management of current assets is to keep business accounts only the minimum amount of liquid assets, which is necessary for the current operations.

The next major internal factor is the financial stability of the composition and structure of financial resources, the correct choice of strategy and tactics of management. The more a company's own financial resources, especially income, the quieter it can feel. It is important to not only the total mass of profit, but also the structure of its distribution, and especially - the share that goes to the development of production from this assessment of the policy and the distribution of profits is put forward in the analysis of financial stability.

In terms of the impact on the financial stability of the enterprise is determined by internal factors are:

Branch of a business entity;

The structure of production, its share in the total effective demand;

The amount of paid-up share capital;

Size and cost structure of their dynamics compared with income;

The condition of the property and financial resources, including reserves and reserves, their composition ...