Pricing strategies are determined by factors like market conditions, consumer demand, and your cost of goods sold


In turn, own financial resources are formed from internal and external



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In turn, own financial resources are formed from internal and external
sources.
In the composition of internal sources, the main place belongs to the profit
remaining at the disposal of the enterprise, which is distributed by the decision of
the constituent (governing) body for the purposes of consumption and
accumulation. Moreover, profit is the main source of replenishment of the
company's equity capital. If the company is unprofitable, then equity is reduced by the amount of losses received. Profit directed to accumulation is then used to develop production; profit directed to consumption is used to solve social problems. Depreciation charges, which represent the monetary value of the depreciation of fixed assets and intangible assets, also play an important role in the composition of own internal sources. They do not increase the amount of equity capital, but are a means of reinvesting it. Other forms of equity capital include income from renting property, settlements with founders, etc.
Among the external sources for the formation of own financial resources, the main role belongs to the additional issue of shares, through which the share capital of the enterprise is increased, as well as the attraction of additional contributed capital (mutual fund) through additional contributions of funds (share contributions).
In a market economy, the production and economic activity of an enterprise is impossible without the use of borrowed funds. Attracting borrowed funds into the turnover of an enterprise, provided they are effectively used, allows it to increase the volume of business transactions, increase revenues, increase the return on equity, since under normal conditions borrowed funds are a cheaper source compared to its own financial resources. In addition, the attraction of borrowed funds allows owners and financial managers to significantly increase the amount of controlled financial resources, that is, to expand the investment opportunities of the enterprise. However,
in a situation where the amount of debt servicing costs exceeds the amount of additional income from the use of borrowed funds, a worsening of the financial situation at the enterprise is inevitable.

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