Uman NUH | today: 04/15/2024
| Author(s) | Grzywacz J., , , Warsaw School of Economics | ||
|---|---|---|---|
| Category | Economics | ||
| year | 2017 | issue | Issue number 90. Part 2 |
| pages | 33-46 | index UDK | 657 | DOI |
| Abstract | Conducting effective business activity relies upon a number of factors of a diverse nature. It is worth noticing that effectiveness is a category that should be considered in terms of achieving the main objective of a company, i.e. consistent creation of value. It mostly depends, however, on skilful stimulation of profitability, in correlation with keeping financial risk under control. This refers primarily to financial liquidity, which virtually determines the very existence of a company. Business practice itself constantly provides evidence to show that there is a close relation between, on the one hand, financial liquidity and ongoing business activity of a company and, on the other hand, the results the company delivers. It is also well known that loss of financial liquidity is the major reason for companies going bankrupt, which also refers to enterprises presenting positive profitability levels. Therefore, the importance of the actual availability of financial instruments that enable the managing of short-term liabilities, as well as the skills of an entrepreneur to make use of those instruments, should not be underestimated. Those, in turn, constitute a significant capital position in many companies, irrespectively of their nature and size. | ||
| Key words | factoring, business activity, capital position | ||