Bill Of Exchange As An Element Of Corporate Finance

Autor: Y. V. Smolyak, B. P. Nikolaev, S. V. Startseva
Rok vydání: 2021
Předmět:
Zdroj: Global Challenges and Prospects of The Modern Economic Development Proceedings of Global Challenges and Prospects of The Modern Economic Development (GCPMED 2020), 15-16 December, 2020, Samara State University of Economics, Samara, Russia.
ISSN: 2357-1330
DOI: 10.15405/epsbs.2021.04.02.168
Popis: The article studies and examines the relationship between the bill and corporate finance. To make a profit, it is not enough for an entity to have its own funds, which may not be enough; in such a situation, not even competent financial management can help. In this case, the receipt of third-party funds is necessary to cover the costs requested by the company at any given time. Cash for current payments can obviously be borrowed from financial institutions such as banks or factoring companies, or a corporate loan can be obtained from a corporate counterparty. In addition to these methods, such a method of business financing as a bill (both simple and transferable) is often used in financial turnover. Corporate finance refers both to the cash reserves of the companies themselves (in the strict sense) and to all possible social relationships arising from the creation and distribution of these cash reserves (in the broad sense). Furthermore, the term corporate finance is identified with financial management, as well as financial science, as a specific area of scientific knowledge. In all definitions of corporate finance there is a clear and unambiguous link to the financial funds of legal entities. These corporate money market funds have a borrowed share, it reflects the funds received in debt. On a bill of exchange, a company can be both a drawer (creditor) and a bearer of notes or an acceptor (borrower).
Databáze: OpenAIRE