Finance is a significant component of human life. People make great efforts to earn money, which is never enough. But from the point of view of economic science, finance is only the means that are used to achieve certain goals. They are endowed with functions, the implementation of which leads to the activation of specific processes. The role of finance is very great in our society. For many, money is the goal of existence. People spend precious years of their lives to earn as much as possible and die in luxury.
The distribution
function of finance in the enterprise. Basic properties
The most significant is the distribution function of finance. This feature can be observed at all levels of economic activity of the society: state, region, enterprise, family and individual. The distribution function provides for the creation of funds and deductions to ensure the activities of an entity. If we talk about the enterprise, then special funds are formed, the resources of which are used to cover the needs and requirements. For example, the wage fund allows you to deduct from the company's profit the amount that will cover the costs of creating goods or providing services.
The formation of financial resources is a very important stage in the business of an enterprise. It is such a reserve that allows companies to develop, develop new technologies or spread their presence geographically. The distribution function of finance also provides for the creation of reserves to cover risks, pay social benefits and subsidies, and resolve unforeseen situations. Modern innovative methods require constant investments and improvements in the means of production and advanced training.
The distribution function of finance in family life
The family, as a separate component of society, has its own commitments and plans that require appropriate investment. Mandatory payments include utilities and rents, expenses on loans and borrowings, contributions to training and educational institutions. In addition, some kind of funds are created, through which the acquisition of the most expensive things, furniture, equipment, as well as the organization of children's or general recreation, is ensured.
Upon receipt of money in the
family budget, they are subject to distribution depending on specific needs and requirements. As at the enterprise, financial resources are subject to planning and forecasting, depending on what their further use is.
Role and importance
The distribution function of finance leads to the possibility of planning further growth and development of the enterprise, improving living conditions and acquiring additional benefits. Consideration of funds as a tool to achieve the goals leads to the realization of their true value and significance. Companies and states learn to properly dispose of available funds when they cease to perceive finances as the very goal of their activities.