Nargiza kasimova farkhod mukhamedov elkan harebov

The characteristic of the cash capital of the enterprise 
By type of source 
By legal status of investor 
Equity 
borrowed capital 
attracted capital 
Formed by external 
sources 
- authorized capital  - bank loan 
- commercial loan 
- bill credit 
- loans from other 
business entities 
- accounts payable 
- special forms of lending 
(leasing, forfaiting, etc.) 
- investment tax credit 
- bond loans 
- funds combined by 
business entities for joint 
activities 
- budget allocations 
- stable liabilities 
(advances to customers, 
etc.) 
Formed by internal 
sources 
- net profit 
- depreciation 
- mobilized 
resources 
– 
- stable liabilities 
(minimum wage arrears 
for workers and 
employees, reserve for 
future expenses and 
payments, etc.) 
 
Own capital of the enterprise characterizes the total value of the funds of 
the agricultural enterprise owned by the owners and used to finance part of fixed 
assets and current assets. 
Borrowed capital characterizes attracted to finance investment and 
operating activities. All forms of borrowed capital are debt instruments that must 
be repaid on time. 
Money capital, used as an investment resource, makes up a certain part of 
the capital of enterprises, both real and financial sectors of the economy, directly 
involved in the investment process. Money capital used as a production resource 
represents a part of their capital, which is involved in the direct production of 
products (goods, services). Initially invested capital characterizes the volume of 
initially formed investment resources aimed at financing a specific investment 
 
41 

---

object (project) (or a certain combination of them, reinvested money capital 
characterizes its repeated investment in a specific investment object or 
instrument at the expense of capitalized net equity (net profit, depreciation 
deductions, etc.). 
The policy of generating money capital depends on external and internal 
factors affecting the activities of the enterprise. 
External factors are: 
- the state of the financial markets of the country 
- the procedure and norms of depreciation deductions established by the 
state 
- tax policy of the state, affecting the level of tax burden and, accordingly, 
the amount of net profit 
- fiscal policy that defines priority sectors for budget financing, its 
conditions and amount of funds 
- monetary (including foreign exchange) policy of the state that regulates 
inflation, sets the price of money, quotes of foreign currencies to the national 
one, conditions for attracting credit resources from non-residents, etc. 
- the investment climate of the country, etc. 
Internal factors determining the policy of formation of money capital 
(funds) are as follows: 
- phase of the life cycle of the enterprise 
- industry specifics 
- the legal form of activity, fixed by the constituent documents of a legal 
entity, determining the conditions for the formation of the authorized capital and 
the distribution of profits, including net 
- profitability of the enterprise 
- the relationship between owners and managers, the separation of powers 
between them 
- level of professional qualifications of managers 
- dividend policy 
- publicity of the enterprise 
- risks, including credit, currency, interest, etc. 
- the possibility of providing guarantees to investors, etc. 
The policy of forming money capital will have its own characteristics 
depending on the phase of the life cycle of the enterprise. The principles and 
indicators underlying the policy of formation of money capital of corporations 
are also presented in Table 3. 
When creating an enterprise and entering the market, the main financial 
source for the formation of money capital (funds) will be funds of authorized 
capital. 
When choosing the legal form of ownership for the formation of the 
authorized capital should consider the development of the capital market in the 
country and the stock market. 
 
42 

---

Table 3.