Strategic landmarks of management of liquidity and business activity of an enterprise

Abstract

Introduction. At a current stage of economic development the activity of domestic business entities becomes complicated due to the lasting defaults crisis, debts growths, unfavorable tax policy, production shortening and a deficit of financial resources. Failure of fulfilling their obligations makes a negative impact on future perspectives of business entities.Problems, that have been determined, have to be studied while the setup of liquidity management of a business entity. That’s why it is important to investigate problems of liquidity and business activity management for the improvement of business entity’s functioning, financial stability, increasing the efficiency of resources (capital) expenditure  and stability of economic growth, increasing the efficiency of activities of an enterprise regarding amounts of advanced resources and a level of their consumption during production.

Purpose. The article aims to disclose theoretical statements and to improve the liquidity management process and business activity of an enterprise.

Method (Methodology). We have used the following methods in this research: method of deduction, method of induction, method of logical generalization, method of analysis, method of synthesis for investigation of theoretical background of liquidity management and business activity management of an enterprise.

Results. Market relations development in Ukraine leads to increase of responsibility and independence of business entities and other market participants in the process of preparation and affirmation of management solutions.  Liquidity of an enterprise in the market economy is a prior condition of existence of an enterprise as social and economic institution.  First of all, liquidity management and business activity policy is important  from the perspective of ensuring continuous and effective current activity of an enterprise, maintenance of a stable financial state and ensuring lasting extension and growth of production and sales rate. That’s why liquidity and business activity indicators become a main tool for the implementation of a complex effective controlling system at the enterprise. Practical use of the results of this article will help to solve problems regarding effective liquidity and business activity of an enterprise, and to make decisions which will be able affect further improvement of an enterprise management process.