Faculty: economy
Speciality: economy of enterprise
Relevance of the topic. In modern economic development the role of profit is growing. Profit is not only the main source of economic activity of enterprise, but is stimulus of any enterprise activity. The market economy, with its extremely high level of complexity, dynamism and uncertainty makes additional requirements for business entities.
Thus great importance is the need to develop same recommendations to improve the efficiency of formation and distribution of profits and adaptation of old methods to modern conditions.
The purpose and objectives of the study. The purpose of graduate work is development of theoretical and practical recommendations to improve the profit of any enterprise.
The following tasks of the paper:
— Definition of the place of profit management in economic process;
— Revision of classification and systematization of profits;
— Assessment of the mechanism of formation and of distribution profit of any enterprise;
— Analysis of profit management methods;
— Research of quality of profit management in Ukraine;
— The study of climate formation and distribution profit of the enterprise;
— Development of methodical base profit management;
— Develop recommendations for more efficient management of profit;
— Improving the mechanism of formation and distribution of profit in the enterprise.
The object of research is the process of profit management.
The object of research is the principles and methods of formation and distribution of profits in the enterprise.
Methods. We used methods of logical analysis (in the study of earnings management), expert method (in the study of environmental factors that affect profit management) and economic-mathematical methods.
The profit is an economic category which is the basic source of financial of development of the enterprise, perfection of its material base and production.
Essence of profit:
— profit is a form of the income of the businessman which carries out the certain kind of activity;
— profit is basic financial result of realization of business, which businessman invested the capital;
— profit is a basic part of monetary accumulation;
— profit is a difference between cumulative incomes and cumulative expenses during realization of enterprise activity;
— profit is a parameter which most full reflects a production efficiency, volumes and quality of production;
— profit is a payment for risk of realization of enterprise activity;
— profit is a source for meeting interfarm needs of the enterprise, a source of formation of budgetary resources, etc.
The model profit management of enterprise is a set of financial-legal and organizational-technical mechanisms and methods of forecasting, planning and the control of expenses and incomes of the enterprise with the purpose of maintenance of effective activity in long-term period.
The profit is not direct object of management because its absolute value is a productive parameter and depends on change of absolute value of other financial parameters of economic activities of enterprise — incomes and expenses of enterprise.
The policy of management of formation of profit includes following elements:
— Development of policy of profit management during operational activity;
— Development of policy of profit management during investment activity;
— Development of policy of management profit management during financial activity.
Operational activity are operations connected with manufacture or realization of production (the goods, services), with purpose of creation of the enterprise and provide the basic share of its income. The expenses connected with primary activity, different functions — manufacture, management, selling, etc. During operational activity the enterprise receives the income (from realization of production, works, services) and minus taxes forming the price and expenses is the profit on operational activity.
Financial activity is an activity which leads to changes of the size and structure of own and extra capital of the enterprise. Main trends of policy of growth of profit during financial activity is maintenance of the enterprise in necessary volumes of the capital from external sources and a substantiation of an optimum parity of own and involved means.
Investment activity is a purchase and realization of non-turnaround actives, financial investments which are not include in financial activity.
Formation of profit during investment activity submits to operational activity. Investment activity characterizes the process of realization of effective forms of the capital investments directed on expansion of economic potential of the enterprise.
In modern conditions of economic development enterprises chooses a distribution policy of net profit independently. No bodies, including the state, have the right to interfere with process of use of net profit. Market conditions of managing define priority directions of distribution of own profit. Development of a competition causes the expansion of manufacture, its perfection, necessity to meet satisfaction of material and social needs of labour collectives.
The basic purpose of policy of distribution of profit is optimization of proportions between its capitalized and consumer its parts taking into account realization of strategy of development of the enterprise and growth of its market cost.
Problems of policy of distribution of profit:
— getting by owners of necessary rate of return;
— achievement of the priority purposes of strategic development of the enterprise;
— labour activity stimulation of the personnel and additional social protection;
— formation of the reserve capital.
Principles of formation of policy of distribution of profit:
1. performance of obligations to the state;
2. provision interest in the best results of managing;
3. creation of privileged terms for investors;
According to principles and directions of profit distribution we point out the following questions which decision should provide optimum distribution of profit of the enterprise:
— payment of the profit taxes of the enterprises;
— payments under credits;
— formation of reserves for future.
Theoretical base for research is fundamental provisions of economic theory, scientific work of domestic and foreign scientists in the field of profit. The normatic base for research is existing laws and regulations that govern the formation and distribution of profits in Ukraine. At this stage work on the master's work is not completed after December 2009 the full version will be available from the author or academic advisor.