Lecture N 8

“Basis of functioning of finance of enterprises and organizations”

Finance of enterprises and organizations represents economic relations connected with creation, distribution and use of money incomes, accumulation, both funds by manufacture and realization of products and services.

Relations in sphere of finance:

Ø Between the state and enterprises in making payments in the state budget, off-budget funds, etc.

Ø Between the enterprises and credit system on crediting and payment of interests

Ø Between the enterprises and their higher organizations at redistribution of incomes, funds, on rent payments

Ø Between the different enterprises in the relation on payment of raw material, fuel, intermediary operations, ready production, services.

Ø Between the enterprises and insurance bodies on insurance of property, personnel insurance.

Ø Between the enterprises and organizations at release both realization of shares and others securities, at mutual crediting and creation of joint ventures.

Ø Between the owners and hired workers- on payments of work, material encouragements, at issues of shares and payments of dividends on them.

Ø Inside the enterprises and organizations in connection with formation and use target funds- authorized, consumption, accumulation, reserve, currency, repair or their possible modifications.

Ø Between the basic activity of enterprises and own capital construction.