Basic principles
A professional investor will never act at random. When analyzing an investment object, it is always based on several basic postulates. Basic principles for making investment decisions:
- profitability (payback) of investments;
- minimizing potential risks;
- acceptable deadlines for achieving the goal.
The main criteria for the effectiveness of an investment decision lie in the plane of its payback or profitability. In other words, the actual return on investment must be greater than the costs incurred. The higher the profitability of a specific investment, the more successful the investment project is considered and the more effective the decision made. It is very important to take inflation expectations into account when predicting the return on investment. After all, when a country’s economy develops without significant shocks, the inflation rate is quite easy to predict.
There are no investments without risks. However, this does not mean that the investor has the right to discount them. On the contrary, no investment decision can be made without an in-depth analysis of the potential riskiness of the asset. All other things being equal, an investor will always choose a project with a lower expected level of risk.
For any financial investment, the time factor is also one of the determining factors. It is necessary to understand that each investment goal must be solved within a strictly defined time interval. Thus, the return on investment is always considered inextricably linked with the deadlines defined for the implementation of the investment project.
Stages of acceptance
Any investment decisions, regardless of the investment object under consideration, are made in several successive interconnected stages.
- Identifying a suitable situation in which investing money will be most appropriate. An incorrectly chosen time or direction of investment can lead to serious financial losses, including the loss of all funds invested in the project.
At the initial stage, the decision-making is seriously influenced by the long-term and medium-term expectations of investors.
- The second stage is associated with conducting a deep and comprehensive analysis of the investment decision. Here the completeness of the information collected by the analyst is of great importance.
- At the final stage, the investor, based on the information and specific conclusions made by analysts, makes an unambiguous decision.
In some sources you can find two additional stages. This is the implementation of the solution and further evaluation of its effectiveness. However, this is the wrong approach. These stages are not directly related to the formation and adoption of a decision. Rather, it is appropriate to talk about them as further stages of the investment process.
Acceptance Methods
Economic science knows about several methods for justifying and making investment decisions. Let's list them:
Important factors that influence
Financiers highlight several aspects that should be taken into account when making investment decisions.
- The prospects (attractiveness) of an investment object or its potential profitability. To determine it, an investor should pay attention to current trends in the development of financial markets. This will provide an overall picture of their condition in the long term.
- One of the main factors complicating making the right decision is the instability of the economic or political situation in the country. In such conditions, it is difficult to accurately determine the level of risk.
- The sufficiency of funds that the investor is willing to invest in the project under consideration. Often, the profitability of the selected project can directly depend on the amount of funding. At the same time, you should focus on your own internal sources of investment. After all, no matter how attractive an investment asset may seem, borrowed capital should be attracted to implement a project in exceptional cases. That is, in situations where the investor is 100% confident in the success of the chosen direction of movement.
Ready-made investment solutions and independent trading
Ready-made investment solutions can be considered an intermediate type of investment between independent trading and trust management. The variety of such solutions allows the investor to invest in various assets, choose the level of profitability, timing and even the degree of risk.
Unlike trust management, where the investment amount starts from 1 million rubles, ready-made investment products allow you to invest amounts from 80-100 thousand rubles. At the same time, independent trading is unrivaled in this parameter. It allows you to start with the cost of one share: for the Russian market it is a couple of thousand rubles, and for the US market it is only a few dollars. So if you don’t have a lot of money initially, open a brokerage account and go for it on the stock exchange. If you have accumulated a capital of several hundred thousand rubles, it makes sense to consider structured products, notes, ready-made strategies and mutual funds .
However, it is incorrect to call ready-made investment solutions a compromise option. For example, the choice of the underlying asset in many structured products lies on the shoulders of the investor himself: a financial advisor does not have the right to do this for him, but will only help him decide and give recommendations. If an investor has experience in independent trading, even if only a little, this will be a good help at the stage when it is necessary to choose a ready-made investment idea or create a portfolio of assets of different classes: stocks, bonds, deposits, precious metals, currencies. When there is neither time nor experience for this, but there is a desire to invest with a pre-selected degree of risk, it is better to use ready-made solutions - structured products. Each such product is a full-fledged investment strategy, presented in the form of a balanced portfolio of assets. Moreover, the investor can choose: more profitable options with increased risk or conservative risk-free solutions with an average level of profitability.
Many investors care about the element of responsibility. Some people prefer to be the full owner of their financial decisions: invest money in specific stocks or bonds, buy certain futures and options. In case of failure and material losses, you will only have yourself and your erroneous analytics to blame. In the case of ready-made investment products, the investor relieves himself of part of the responsibility for financial failure, but losses for most such products rarely exceed 10-20% of the initial capital . Protective structured products are a completely guaranteed return of capital, and the whole risk lies in non-receipt of income. Independent trading involves the risk of losing all invested funds, and this stops many conservative investors who ultimately prefer ready-made investment solutions because of their reliability and higher likelihood of receiving income.
The best option for a novice investor would be a combination of ready-made investments with the practice of independent trading . This approach will protect you from financial losses and allow you to accumulate practical experience necessary in the future. Moreover, for both the first and second options today you don’t even need to leave your home: everything is available online.
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Investment decision
Investment decisions are the procedure for approving an idea based on the assessment and analysis of information available about the investment asset. The main decision-making criteria are historical experience, potential profitability and risk.
In a simpler form, an investment decision is usually called a balanced and reasoned analysis of all the positive and negative aspects of an investment. The decision is made (depending on the scope of the investment project) by the entire investment group or by one person.
It is necessary that the decisions made correspond to the strategic goals and objective capabilities of the investor.
Valuation helps protect investments from the risk of loss and helps predict compensation and/or profits for all participants in the process.
The object of analysis is not the project itself, but the cash flows associated with it. Project implementation is a complex and multifaceted process, and it is very difficult to calculate and predict possible developments in detail. Economic and mathematical models and expert methods of collecting information are used for analysis.
The following factors are primarily assessed:
- Risk and profitability indicators affecting the results of an investment project
- Payback periods.
Types of investment decisions depending on the direction of investment:
- decisions, direction to reduce costs of conducting core activities (costs of producing main products, improving quality, improving production technology and organization of work processes)
- decisions related to the development and modernization of production (reconstruction, expansion and construction of new facilities)
- decisions related to the development of new markets
- decisions aimed at acquiring various financial and intangible assets in order to generate income in the future
- mandatory investments (improving working conditions, reducing economic damage).
Ready investment solutions
* Open-end investment fund of market financial instruments “Sber – Global Shares” - rules for trust management of the fund were registered by the Federal Financial Markets Service of Russia on December 26, 2006 under No. 0716-94122086. Return of the Fund as of April 30, 2021: for 3 months. (10.2%), for 6 months. (18.1%), for 1 year (44.8%), for 3 years (86.7%).
** The potential investment result of the IIS “Accumulative” strategy is calculated in the example based on the assumption of annual replenishment of the IIS by 400,000 thousand rubles, receiving a tax deduction of type A and reinvesting the received amount every year on July 1, as well as based on the assumption of investing funds on an IIS in a securities portfolio consisting of 60% of bonds included in the calculation of the Moscow Exchange Index of Ruble Corporate Bonds, and 40% of bonds included in the calculation of the Moscow Exchange Index of Government Bonds. The specified portfolio showed an increase of 52.8% for the period from 01/01/2017 to 11/18/2020. The “Accumulative” strategy, starting from 06/01/2020, invests in the specified bonds in the specified proportion by purchasing shares of a mutual fund managed by Sber Asset Management JSC. The example takes into account the remuneration of the management company, but does not take into account personal income tax. The return on investment is not guaranteed and may be less or more than the stated value.
*** “Dollar Bonds” strategy – average annual return scenarios: positive +8.1%, neutral +3.9%, negative -0.4%. Scenarios of average annual returns are calculated based on the historical values of asset prices from the strategy portfolio and/or indices, with which the results of mutual fund management in the strategy portfolio are compared, for 5 years, provided that investments in the strategy are made for at least 3 years. To calculate the neutral scenario, the median return value of all possible values on a given time horizon is used, to calculate the positive scenario, the 10% of the best return indicators are used, and to calculate the negative scenario, the 10% of the worst return indicators are used. The above profitability scenarios cannot be considered as a guarantee or guide to the profitability of an investment in accordance with the proposed investment strategy. The scenarios are calculated taking into account the management company's commissions.
**** Strategy “Luxury Goods”
Services for the formation of an individual pension plan are provided by Sberbank NPF JSC (115162, Moscow, Shabolovka St., 31 G. INN 7725352740 OGRN 1147799009160 License No. 41/2 dated June 16, 2009, issued by the Federal Service for Financial Markets) . The information does not constitute an offer. Past investment performance does not determine future returns. More information about the conditions of the individual pension plan “Target”, cost, restrictions on the website - https://www.sberbank.ru/ru/person/investments/ipp. You can sign up for an individual pension plan in the Sberbank Online mobile application in the “Investments and Pensions” section. The Sberbank Online mobile application is available to holders of Sberbank bank cards (except for corporate cards) connected to the Mobile Bank SMS service. To use the Sberbank Online mobile application, you must have access to the Internet. For detailed information about the Sberbank Online mobile application, please visit the Bank’s website www.sberbank.ru, in branches or by calling Sberbank PJSC. General license of the Bank of Russia for banking operations No. 1481 dated August 11, 2015.”
Insurance services are provided by Sberbank Life Insurance LLC. License to carry out insurance SZh No. 3692 (type of activity - voluntary life insurance), License to carry out insurance SL No. 3692 (type of activity - voluntary personal insurance, with the exception of voluntary life insurance) were issued by the Bank of Russia without limitation of validity.
You can sign up for savings and investment life insurance programs in the Sberbank Online mobile application in the “Investments and Pensions” section. The Sberbank Online mobile application is available to holders of Sberbank bank cards (except for corporate cards) connected to the Mobile Bank SMS service. To use the Sberbank Online mobile application, you must have access to the Internet. For detailed information about the Sberbank Online mobile application, please visit the Bank’s website www.sberbank.ru, in branches or by calling Sberbank PJSC. General license of the Bank of Russia for banking operations No. 1481 dated 08/11/2015"
Trust management services (OPIF, IIS, trust management strategy “Dollar Bonds”) are provided by Sber Asset Management JSC - registered by the Moscow Registration Chamber on April 1, 1996. License of the Federal Commission for the Securities Market of Russia to carry out activities related to the management of investment funds, mutual funds and non-state pension funds No. 21-000-1-00010 dated September 12, 1996. License
FCSM of Russia No. 045-06044-001000 dated June 7, 2002 for the implementation of securities management activities.
Familiarize yourself with the terms of asset management, obtain information about Sber Asset Management JSC and detailed information about mutual investment funds (hereinafter referred to as the UIF), familiarize yourself with the rules of trust management of the UIF (hereinafter referred to as the UIF PDU) and other documents subject to disclosure and provision in accordance with with the current legislation, as well as obtain other information, interested parties before concluding a trust management agreement can at the address: 121170, Moscow, st. Poklonnaya, 3, bldg. 1, 20th floor, on the website ww.sber-am.ru, by phone: 900, 8 (800) 555 55 50,. Information to be published in a printed publication is published in the “Appendix to the FFMS Bulletin”.
A securities manager's past performance does not determine future earnings. Before making an investment decision, you should carefully read the trust agreement and risk declaration.
The value of investment shares may increase and decrease, the results of investing in the past do not determine future income, and the state does not guarantee the profitability of investments in mutual funds. Before purchasing an investment share, you should carefully read the mutual fund's policy. The Mutual Fund PDU provides for premiums (discounts) to (c) the estimated value of investment units upon their issuance (redemption). Charging premiums (discounts) will reduce the profitability of investments in mutual fund investment units.
Investments involve risk. The state, Sberbank PJSC, Sber Asset Management JSC do not guarantee income from trust management. Funds transferred to trust management are not subject to insurance in accordance with Federal Law No. 177-FZ dated December 23, 2003.
Making Effective Decisions
To calculate the profitability of a project, the following mathematical quantities are used:
- norm and index of project profitability
- net reduced effect
- discounted capital values and profitability
- project deadlines
- investment efficiency ratio.
Making an effective investment decision is impossible without the use of financial analysis and strategic planning. The financial analysis procedure will help determine sources of financing, and strategic planning will coordinate new directions of development with those that are already in use.
If an investment decision does not solve the problems facing the investor, alternative solutions and projects are proposed that are more profitable, safer, and more efficient.
Decision making is complicated by limited material and monetary resources, the presence of risks and the current economic situation in the market.
To differentiate investment decisions by degree of importance, they are conventionally divided into 4 groups:
- mandatory
- made to minimize costs
- made to expand the company
- aimed at acquiring investment assets.
A solution is considered effective when it meets the following criteria:
- investments should be made when the potential return is higher than the return offered by bank deposits
- you need to invest when income for the reporting period exceeds the inflation rate
- use the rule of balancing risks (the enterprise finances the riskiest investments from its own funds)
- priority is given to projects and assets with maximum profitability
- new investments should not run counter to the enterprise’s development strategy, but, on the contrary, should strengthen it.
Main stages of decision making:
- identifying a situation suitable for investment
- selection of existing investment opportunities and proposals, their primary analysis and evaluation
- detailed analysis of all suitable proposals, making an investment decision
- implementation and implementation of investments
- control over the implementation of investments, as well as post-investment control.
Factors influencing investment decisions
The article presents the results of empirical assessments of the influence of uncertainty, as well as behavioral and rational factors on the investment policy of Russian companies. Based on the theoretical models of Sandmo and Bo & Sterken, estimates were made using the least squares method, models taking into account the panel data structure and the generalized method of moments on a sample of Russian companies.
The work outlines the economic essence of the criteria for investment attractiveness, characterizes the possibility of expressing these criteria through quantitative indicators, and emphasizes the need to manage competitiveness in business activities.
The types of long-term investments, sources of their financing, and the order of reflection in accounting accounts and reporting are considered.
The article examines the current state of scientific methodology in relation to psychology. It is shown that the methodology has developed and branched out so much that the time has come to develop its special type: a methodology for selecting and applying methodology to particular sciences. The role of art as a kind of methodology is specially highlighted: art feeds intuition, and methodology feeds discourse. The article also presents the propaedeutics of methodological culture and provides criticism or problematization of the uniqueness of a number of methodological principles existing in modern psychology. The problem of compatibility/incompatibility of polarities, which have existed in psychology for centuries and discussions about which do not subside, is also discussed.
The Center for Market Research of the Institute of Statistical Research and Economics of Knowledge of the State University - Higher School of Economics presents information and analytical material “Investment activity of industrial organizations in 2009”, prepared on the basis of annual market surveys of managers of more than 10 thousand industrial organizations conducted by the Federal State Statistics Service.
Market surveys are aimed at promptly obtaining from entrepreneurs, in addition to official statistical data, short-term qualitative assessments about the state of the business and the main trends in its dynamics, the peculiarities of the functioning of business entities, their intentions, the degree of adaptation to business mechanisms, the current business climate, as well as the most important factors limiting production activities. The survey program is based on international practice in measuring business activity.
The structure of the sample population is identical to the structure of the general statistical population. At the same time, the sample size is sufficient to obtain the required accuracy of sample estimates of indicators at all levels of statistical data development for sections of OKVED (C, D, E).
An analysis and comparative characteristics of the returns of the largest mutual investment funds was carried out; trends towards an increase in profitability with an increase in the risk of an investment fund have been identified; The main trends in the development of mutual investment funds have been identified.
The collection presents the works of graduate students and students in such sections as strategies for the dynamic development of Russia; the potential of regions in the dynamic development of Russia; Russian business is the basis of the country’s economic development; problems of market infrastructure development; economic growth and investment processes in the regional economy; Russia in the context of new global development directions.
The collection includes articles by participants in the international scientific and practical conference “Economics and Management: Problems and Prospects for Development”, held on November 15-16, 2010 in Volgograd at the Regional Center for Socio-Economic and Political Research “Public Assistance”. The articles are devoted to current issues of economic, management theory and practice, studied by scientists from different countries participating in the conference.
Translations of classics in sections of economic science (MILESTONES OF ECONOMIC THOUGHT), economic textbooks, reference and methodological materials, book series, economic terminology
The purpose of the work is to compare monetary policy regimes from the point of view of the vulnerability of the economies of the countries using them to crises. The work consists of two parts. The first part contains a review of the literature, which presents the results of studies examining the susceptibility to crises of economies that apply such monetary policy regimes as exchange rate targeting, classical and modified inflation targeting. It also provides assessments of the effectiveness of the accumulation of foreign exchange reserves as a tool for preventing or mitigating crises. The second part of the work - empirical - describes the methodology and results of comparing the adaptive abilities of economies, obtained from an analysis of the dynamics of key macroeconomic indicators in the pre-crisis and post-crisis periods in countries grouped by monetary policy regimes. In addition, estimates of the susceptibility of economies to crises are presented based on calculations of the frequencies of crises under different regimes.
Investment management. Test with answers
1. Money advanced into working production assets and circulation funds, ensuring the process of production and circulation at the enterprise, is: • working capital
2. The gap between the volume of savings and gross savings in the Russian Federation (as a percentage of GDP) has recently been • one of the largest in the world
3. The bank is exposed to the greatest risk by issuing a loan to an enterprise classified in terms of creditworthiness in the ____________________ class(es). • third
4. According to regional sources of attracting capital, investments are distinguished: • domestic and foreign
5. Income, proceeds from the sale of products minus the cost of material costs is: • gross income of the enterprise
6. In small enterprises that use a simple linear organizational structure of management, the functions of managing investment activities are usually carried out by: • the owner of the enterprise or a hired manager working under a contract
7. The total income for assessing economic efficiency consists of comparing results and costs and is distributed: • as the ratio of the results from the implementation of the project to the costs of its implementation
8. From the point of view of a systems approach, investment management is implemented through two groups (subsystems) of functions, such as: • the management system and the special area of enterprise management
9. Direct (real) investment is an investment of funds (capital in the creation of... • real assets of an enterprise
10. Investments related to the implementation of the operating activities of an enterprise or improving the working and living conditions of its personnel are investments ... • real
11. Bankruptcy creditors include: • creditors for monetary obligations, with the exception of creditors provided for by the Federal Law “On Insolvency (Bankruptcy)”
12. Evaluation of the formed investment program of an enterprise in terms of profitability, risk, liquidity is: • one of the stages of forming an investment program
13. The effectiveness of an enterprise’s investment policy is assessed by indicators of • profitability and payback period of investments
14. Investments of an enterprise represent the investment of capital in all its forms in various objects of its economic activity in order to obtain • profit and achieve other economic or non-economic effect
15. A legal entity that is unable to satisfy the claims of creditors for monetary obligations (or) to fulfill the obligation to make mandatory payments meets the criteria of bankruptcy if the corresponding obligations are not fulfilled by it within • three months from the date on which they should have been fulfilled
16. The annual increase or decrease in the working capital standard of an enterprise is determined by • comparing the standards at the beginning and end of the coming year
17. An enterprise that uses: • only its own capital
18. Net present value (NPV) is an indicator for assessing the effectiveness of an investment project, taking into account... • the excess of integral results over integral costs
19. The maximum profit can be obtained by an investor who follows the strategy of • “capturing liquidity”, i.e. searching for a company that is at the stage of becoming the most liquid
20. Financing of starting risky investment projects is: • venture financing
21. The ratio of equity capital to the total balance sheet reflects: • the overall solvency ratio or the autonomy ratio
22. On the scale of the entire society, the amount of savings is determined primarily by: • the level of development of production
23. Depending on the consideration of the time factor in the implementation of investment costs, methods are distinguished: • statistical (accounting) and discount (dynamic)
24. In the structure of investments in fixed capital in the Russian Federation for 1999-2003. investments predominate in the following sectors of the national economy: • in the fuel industry, transport, housing and communal services
25. The principles and provisions of the long-term environmental policy of the Russian Federation were formulated in: • the concept of the Russian Federation’s transition to sustainable development
26. An investment portfolio may consist of securities of different types • and varying degrees of profitability
27. If the joint stock company lacks profit, the bonds are repaid from: • the joint stock company’s reserve fund
28. When checking the creditworthiness of an enterprise, the bank sets a score of ____________________ points for first-class borrowers. • from 100 to 150
29. The risk associated with conducting industrial analysis, during which the attractiveness of the country’s economic sectors is assessed, is the risk ... • industry
30. Environmental protection measures carried out by the enterprise are financed from the accumulation fund •
31. The process of releasing invested capital, ensured by its liquidity, is characterized by the term “disintegration”
32. The budgetary efficiency of an investment project reflects the financial consequences of implementing its results for: • the federal, regional or local budget
33. To bring different-time results, costs and effects of an investment project, they are reduced using a discount rate equal to the rate of return on capital acceptable to the investor
34. Among the many factors that determine the investment climate in Russia, we can highlight: • economic and financial, socio-political, legal
35. The results of forecasting the composition of assets and the structure of the financial resources used by the enterprise at the end of the planning period reflect: • balance sheet plan
36. Depending on the depth of analytical research, the following types of investment analysis are distinguished: • express analysis and fundamental analysis
37. The main factors determining the level of wages in Japanese enterprises are: • labor efficiency (labor contribution and length of service)
38. An objective-oriented system of integral analysis of the formation of an enterprise’s net profit was developed: • (USA)
39. In the Russian Federation, the procedure for issuing bonds is regulated by: • Federal Law “On the Securities Market”
40. The main share of the funds of the Development Budget of the Russian Federation was intended to finance • export-oriented and import-substituting investment projects
41. In foreign literature, the concept of “investment” is interpreted: • quite narrowly and contradictory
42. The final section of the business plan for an investment project is: • financial analysis (financial analysis of investments)
43. The cash flow indicator is determined for the following types of activity of the enterprise : production, investment, financial
44. The period from which initial investments and other costs associated with an investment project are covered by the total results of its implementation is an indicator of... • the payback period (PA) of the project
45. The possibility of obtaining equipment through leasing is: • one of the factors taken into account when developing an enterprise’s investment policy
46. Risks in investment activities are influenced by factors : • external and internal
47. The system of basic elements regulating the process of development and implementation of investment decisions of an enterprise is: • investment management mechanism
48. Among the indicators for assessing the effectiveness of investment projects recommended by the “Methodological Recommendations”, the most common are: • payback period (PA)
49. Obtaining the greatest profit by an enterprise on invested capital with minimal investment costs is: • one of the principles of the enterprise’s investment policy
50. The amount of costs for creating a controlling system at an enterprise should not exceed the effect that is achieved during its existence and relates to such principles of investment controlling as: • cost-effectiveness of the controlling system
51. According to the author of the domestic textbook “Investment Management” I.A. Blanka, the variety of concepts of the term “investment” in both domestic and foreign literature is due to: • the breadth of the essence of the parties to this complex economic category
52. The works of Russian economists (RAS academician D.S. Lvov and others prove that of the two indicators of the level of wages and labor productivity, Russia’s greatest lag is observed in terms of: • wage level
53. Assessment of the effectiveness of investment projects carried out on a competitive basis at the expense of the development budget of the Russian Federation is carried out on the basis of • a special Regulation approved by the Government of the Russian Federation
54. The acquisition of assets in the form of securities for profit is: • financial - portfolio investment
55. The difference between the present and present value of net cash flow for the period of operation of the investment project and the amount of investment costs for its implementation is: • net present value (NPV)
56. The low level of remuneration for specialists, scientists, and scientific workers in Russia is one of the reasons • for “brain drain” abroad and their misuse
57. In accordance with the Tax Code of the Russian Federation, in relation to depreciable fixed assets operating in an aggressive environment, a special depreciation coefficient is applied, increasing the basic depreciation rate by: • 2 times
58. A bankruptcy case may be initiated by an arbitration court, provided that the claims against the debtor - a legal entity in the aggregate - amount to at least • 100 thousand rubles
59. One of the forms of control over the activities of an investment manager is a document that clearly defines his duties, rights, forms and responsibilities, namely • an employment contract
60. The renovation investment policy of an enterprise is part of... • real investment management policy
61. The placement of bonds by a joint stock company is permitted after • full payment of the company’s authorized capital
62. Commercial organizations such as: • joint-stock companies
63. The following investment analysis system allows you to obtain the most in-depth (multifactor) assessment of the conditions for the formation of individual aggregate indicators in investment management: • integral analysis
64. Systems of principles and methods for developing and implementing management decisions related to the implementation of various aspects of the investment activity of an enterprise are: • investment management
65. At the third stage of selecting investment projects for the program, one of the main regulatory restrictions is taken into account: • the maximum permissible level of overall project risk
66. In accordance with the legislation of the Russian Federation, control over the activities of management in a joint-stock company is exercised by: • the board of directors (supervisory board), the general meeting of shareholders
67. The requirement to take into account the social effect from the implementation of investment projects follows from: • the provisions of the Constitution of the Russian Federation
68. The discount rate at which the value of the given effects is equal to the given capital investments is: • internal rate of return of the project
69. The object of management in investment management is: • investments of the enterprise and its investment activities
70. The business plan of a young company established to implement a corresponding innovation project should include the costs of patenting inventions, which average in US dollars • 5-6 thousand
71. In modern investment practice, when calculating indicators for assessing the effectiveness of investment projects, methods based on the use of: • discount calculation methods
72. Funds belonging to an economic entity that are advanced by it to create the net assets of the enterprise are: • equity capital
73. The use of borrowed funds by an enterprise, which influence the change in the return on equity ratio, is an indicator of... • financial leverage
74. The main document defining the need for real investment, in which the main characteristics and financial indicators associated with investment are given in the generally accepted sequence, is: • investment project
75. Lintner empirically found that most managers (in his sample) prefer to adjust the amount of dividends paid • slowly, once every three years on average
76. The undistributed net profit of the enterprise is added to: • the authorized capital
77. The amount of money for state support of investors at the expense of the development budget of the Russian Federation is established by: • Federal Law on the Federal Budget for the corresponding year
78. A number of stages, including the creation, distribution and application of products and technologies that have scientific and technical novelty and satisfy social needs, are: • the innovation process
79. The minimum required amount of funds to ensure the entrepreneurial activity of an enterprise is: • working capital standard
80. The relationship between bonds and prefactions, on the one hand, and ordinary shares, on the other, is: • financial leverage
81. Payment of income to the owners of the enterprise is carried out from: • consumption fund
82. Comparison of the effect (results and costs) is: • the principle of assessing the effectiveness of investment projects
83. A budget that does not change depending on changes in the volume of investment activity of an enterprise is: • a stable budget
84. According to development methods in the process of operational investment planning, the following types of budgets are distinguished: • stable and flexible budgets
85. The total amount of capital invested in the reproduction of fixed assets and intangible assets of an enterprise in a certain period is: • gross investment of the enterprise
86. The main forms of financial investment are investments in: • types of stock and monetary instruments
87. An investment operation that ensures a complete change in the technology of the production process for the release of new products is: • repurposing
88. The risk associated with the wrong choice of types of capital investment is the risk... • selective
89. In terms of the influx of foreign direct investment, Russia ranks (is located): • a rather modest place
90. Investment of capital in investment projects or financial instruments, the expected level of net investment profit for which approximately corresponds to the rate of investment profit prevailing in the investment market, is: • average-income investments
91. The threat of complete or partial loss of profit from the implementation of an investment project, or from the financial activities of an enterprise as a whole is a risk... • acceptable
92. The non-tariff system of remuneration developed and used in MITK “Eye Microsurgery” provides for an increase in wages when establishing coefficients, the gap in wages between the head of the enterprise and the doctor is: • one and a half times
93. When organizing wages and other forms of motivation for Russia in the transition period, the following is most suitable: • combination and addition of domestic and foreign experience
94. Investment of capital in investment objects, the level of risk for which approximately corresponds to the market average, is: • medium-risk investments
95. A complex object in which innovative projects are interconnected functionally in terms of timing, executors and results is: • an investment program
96. The process of studying investment activity and the effectiveness of an enterprise’s investment activities in order to identify reserves for their growth is: • investment analysis
97. The capital of an enterprise newly formed for investment purposes, both at the expense of its own and borrowed financial resources, is: • primary investments
98. In accordance with the Federal Law “On Insolvency (Bankruptcy)”, no later than a month from the date of commencement of bankruptcy proceedings, the bankruptcy trustee must: • notify the head of the debtor and all employees of the debtor about the upcoming dismissal
99. From the point of view of a venture investor, the effectiveness of venture financing is understood as: • the effectiveness of the invested project
100. The process of encouraging employees to act to achieve the goals of the organization is: • motivation
101. The conditions and procedure for the competitive selection of investment projects implemented through government funding are determined by: • Resolution of the Government of the Russian Federation
102. The ability of a financial asset to quickly turn into money for the purchase of real estate, goods and services is: • liquidity
103. For depreciable fixed assets that are the subject of a financial lease agreement (leasing), you can apply a depreciation coefficient equal to: • three
104. Economic efficiency from the implementation of the results of an investment project is determined: • at all levels of management
105. The main criterion at the first stage of selecting investment projects is: • the rate and volume of capital growth in the process of investment activity
106. The market-beating approach to portfolio management is: • an active approach
107. Financing investment activities from one’s own financial resources generated from internal sources is: • self-financing
108. General standards for depreciation charges, reflecting their different service life, are regulated by: • the legislation of the Russian Federation
109. The main indicator of the budgetary efficiency of an investment project is: • integral budgetary effect
110. There are such approaches to assessing the value of property, such as: • income, comparative (market) and cost (property)
111. Credit financing is used, as a rule, for the implementation of • small short-term projects with a high rate of return on investment
112. Investors who invest in a portfolio of securities that differ in profitability and riskiness are usually called: • institutional
113. The principles of modern portfolio theory were formulated in the 50s of the twentieth century. scientists • G. Markowitz
114. For depreciable fixed assets that are the subject of a financial lease agreement (leasing agreement), the taxpayer has the right to apply a special coefficient not exceeding 3
115. In a planned economy, the efficiency standard for capital investments was established: • centrally
116. The main tool for managing an investment project is: • business plan
117. Financial (portfolio) investments are the investment of capital in ... • various financial instruments in order to generate income
118. When calculating the economic efficiency indicators of an investment project at the enterprise level, the following are primarily taken into account: • revenue from product sales
119. A change in the amount of profit by increasing the volume of invested funds of an enterprise in the production of goods and services occurs under the influence of factors • extensive
120. The investment market is formed under the influence of: • the entire system of market economic conditions
121. An investment project is effective if the net present value (NPV) is: • positive (at a given discount rate
122. The authorized capital of a joint stock company can be increased by • increasing the par value of shares or placing additional shares
123. The long-term investment policy of an enterprise is developed for a period of • more than 2 years
124. The form of implementation of the investment ideology and investment strategy of the enterprise in the context of the most important aspects of investment activity at individual stages of its implementation is: • investment policy of the enterprise
125. Specific measures for the social orientation of the market economy in the Russian Federation are provided for in: • The program of socio-economic development of the Russian Federation until 2010
126. Revenue from sales of products (works, services) is: • part of the enterprise’s income
127. A special form of state support for private investment is an investment tax credit, which can be provided against tax (income) of an organization for periods from • one year to five years
128. A negative value of “cash flow” to “cash balance” means that the business entity • is actually bankrupt
129. The risk arising from a decrease in the amount of interest and dividends on portfolio investments is the risk of ... • return expectations
130. The algorithm of actions of the investment manager, in the event of a negative “acceptable” deviation, consists in the action • “do nothing”
131. The internal users of an enterprise’s investment information are: • owners and managers of the enterprise, investment managers
132. Non-standardized working capital includes: • elements of circulating funds
133. The final formation of the investment program, taking into account the parameters of profitability, risk and liquidity, characterizes the process of justifying “preferential investment decisions” in investment management •
134. The duration of one complete circulation of funds, starting from the first and ending with the third phase, is: • turnover of working capital
135. A security that secures the right of its holder to receive from the issuer within a specified period its nominal value and the percentage of this value fixed in it is: • a bond
136. When assessing the effectiveness of investment projects, the following effects are taken into account : economic, social, scientific and technical, environmental
137. The following have the right to apply to the arbitration court to declare a debtor bankrupt: • the debtor, the bankruptcy creditor, the authorized bodies
138. The ability of an enterprise to pay its debt obligations in a timely and complete manner indicates: • its creditworthiness
139. The main goal of a commercial organization is: • making a profit
140. Control over the effective use and intended purpose of funds from the Federal budget allocated for capital investment, in accordance with the legislation of the Russian Federation, is carried out by: • The Accounts Chamber of the Russian Federation
141. Equity participation in the ownership of an enterprise is: • one of the forms of management motivation
142. In accordance with the Labor Code of the Russian Federation, a fixed-term employment contract (for a period of no more than five years) is concluded: • with managers, deputy managers and chief accountants of the organization
143. The most important source of the enterprise’s own funds is: • net profit and depreciation charges
144. The costs of writing contracts, monitoring their implementation, and demonstrating to the manager that he will fulfill the contract are: • direct agency costs
145. Further progress of the securities market in the Russian Federation may lead to the fact that one of the main methods of attracting investment capital by Russian companies will be: • issuing bonds
146. An indicator of the degree of capitalization of an enterprise’s income is: • capitalization ratio
147. In the medium-term Program of socio-economic development of the Russian Federation for 2003-2005. the following relationship is provided between the growth rate of investment and the growth of industrial output: • investment in fixed capital is growing faster than the growth of industrial output
148. Enterprises as objects of investment management can be classified: • according to a number of characteristics
149. The main criterion for justifying the “exit” of a project from the investment program is: • the expected value of the net present value or internal rate of return for the investment project
150. The main sources of financing investments in the economy are: • savings
151. The conflict of economic interests of owners and managers is due to: • separation of ownership from current control over the work of the company
152. The structural unit of an enterprise, the head of which is responsible for using the investment resources allocated to it and obtaining the necessary profit from investment activities, is: • “investment center”
153. A loan in cash or commodity form on the terms of repayment and with the payment of interest is: • a loan
154. Financing of investment projects from budget funds is provided at the level(s) of management: • federal, regional, local
155. The introduction of financial recovery in accordance with the Federal Law “On Insolvency (Bankruptcy)” leads the debtor’s management bodies to the following consequences : • management bodies continue to exercise their powers, but with significant restrictions provided for by law
156. Recognition of a debtor as bankrupt by an arbitration court entails the following bankruptcy procedure : • opening of bankruptcy proceedings
157. Modern economic theory puts forward the following as the main goal of investment activity of enterprises: • maximizing the welfare of the owners of the enterprise
158. The mechanism developed at the enterprise for constant monitoring of controlled indicators of investment activity, determining the size of deviations of actual results from those envisaged and identifying the reasons for these deviations is: • an investment monitoring system
159. The financial consequences on the income and expenses of the federal, regional or local budgets from the implementation of an investment project is the efficiency ... • budget
160. Working capital in the first phase of the circulation turns into: • inventories
161. A loan issued by a bank or credit institution on the terms of urgency, repayment and payment is a loan... • financial
162. The higher the amount of “cash flow” of each of the sections of the enterprise’s economic activity (production, investment, financial), the better its financial position •
163. Cash intended for the restoration of worn-out fixed assets is: • depreciation
164. In accordance with the Tax Code of the Russian Federation, the straight-line depreciation method is applied to the following depreciation groups: • eighth, ninth and tenth
165. When assessing and supporting investment projects of a sociocultural nature, one should first of all take into account the type of effect • social
166. A shareholder has the right to file a claim with the court against the executive body of the joint-stock company if he owns in total the issued ordinary shares in the amount of - ... • 1%
167. A portfolio designed to generate high current income (in the form of dividends and interest) is a portfolio of... • income
168. The main condition that forms the positive effect of financial leverage is: • financial leverage differential
169. Savings and investments are interrelated categories, so ... • savings are potential investments
170. With an increase in the volume of investment activity and its diversification, the specialization of managers at all levels will: • steadily expand
171. At large enterprises using a divisional management structure, investment management functions are assigned to: • heads of relevant production departments
172. The income of an enterprise, reduced by the amount of expenses incurred, is: • profit
173. Financing of investment projects of an innovative nature with increased risk in exchange for an appropriate share in the authorized capital or a certain block of shares is: • venture financing
174. To determine the amount of balance on the current account of a business entity, which is formed as the balance between the receipt of money and its expenditure, the indicator • “cash flow”
175. A situation in which one class of economic entities has more complete information than another is: • Asymmetric information
176. For investments, an enterprise can use at the expense of profits • part of the net profit in the form of an accumulation fund
177. Classical economic theory was based on the statement that the main goal of investment activity is: • maximizing the profits of individual economic entities
178. The final stage of managing the investment activities of an enterprise on the basis of “investment centers” is: • ensuring control over the implementation of established tasks, analysis and elimination of the causes of deviations
179. In accordance with the Tax Code of the Russian Federation, the income tax rate is set at: • 24%
180. The use of an increased depreciation rate leads to: • an increase in production costs
181. There are different types (types) of permissions for a broker to carry out transactions, such as: • “market” and “limit”
182. External users of investment information mainly use information contained in: • official financial statements of the enterprise
183. The payment calendar for the next period is usually drawn up • for the coming month (broken down by day, week, and decade)
184. The most effective form of motivation for managers currently is: • all forms of motivation
185. Modern research shows that in developed countries (non-financial) corporations, historically being large savers, create a national investment fund approximately in the amount of - ... • 60%
186. The amount of gross profit of an enterprise is influenced by the following factors : • external and internal
187. The amount of support for investment projects is carried out at the expense of the Federal budget and cannot exceed the borrowed funds necessary for the implementation of the project in the amount of: • 60%
188. If the design of the prototype or the basic technology does not change fundamentally, then in terms of the level of scientific and technical significance they can be classified as: • modernization
189. Operational planning of investment activities covers the following period • quarter, broken down by month
190. Dynamic methods for evaluating investment projects are based on: • the concept of cash flows
191. The system for managing risk and economic relations arising in the process of this management is: • risk management
• 20% or more can be accepted as a criterion for “critical” deviation for each type of investment controlling
193. Justification of the economic feasibility, volume and timing of capital investments, including design and accounting documentation developed in accordance with the legislation of the Russian Federation and standards approved in the prescribed manner, is: • an investment project
194. Until recently, the instability of the economic situation in Russia contributed to the fact that the population, in order to save their savings, increasingly actively invested them in mainly: • the purchase of foreign currency
Making investment decisions and factors influencing them
Concept and types of investments.
Investments are investments of capital for the purpose of generating income or other economic benefit.
Investments are divided into:
1) according to purpose:
-non-commercial (creation or increase in the number of goods or services produced not on commercial terms)
-real - directly into various elements of real capital, i.e. economic resources; increase real stock, fixed capital, etc.
-financial – investments in various types of financial assets – bank. deposits, foreign currency and other forms of assets. In a developed financial market, the Finnish investments mediate real investments.
4) according to the method of control:
-direct – make it possible to directly control the organization
-portfolio – these are financial investments that are usually insufficient to exercise complete control.
By funding source
-Centralized (at the expense of the federal budget and the budget of the constituent entities of the Russian Federation)
-Decentralized (at the expense of legal entities and individuals-developers)
6) by the length of the payback period:
-short-term (up to 1 year)
-medium-term (from 1 to 3 years)
- long-term (more than 3 years)
7) Depending on the form of ownership:
-State (investments of state enterprises and institutions)
-Private (investments of legal entities and individuals employed in the private sector of the economy)
-Mixed (a combination of private and public investments.
-Joint (subjects of the Russian Federation and foreign investors)
A special place in the investment system is occupied by venture (risk) investments directed into the field of new technologies.
Goals and sources of investment financing.
Head The goal is to make a profit and increase the market value of the organization.
Second order goals:
-increasing market share
-obtaining a certain mass and rate of profit, approaching target values
3rd order goals:
-replacement of worn-out fixed capital
- rationalization (improvement) of the structure of fixed capital
-change in the structure of products and assortment
- mastering new products, technologies, commodity markets.
-establishing control over new areas of production and sales of products, over new stages of technological development of the product.
-gaining leadership in the field of innovation. products, quality
-ensuring survival in times of crisis
-improving financial condition, financial and non-financial indicators.
Modern Economists believe that so-called non-financial factors make a significant, sometimes determining contribution to the production of value, increasing the market value of a company and increasing its efficiency:
-quality and level of personnel training
-the nature of his motivations
-training system
-use of social and cultural management factors.
Accordingly, the use of these factors in the process of managing the organization’s activities becomes the most significant and necessary in managing the financial stability, profitability, market value and efficiency of the organization. Accordingly, the management process also covers investments in these factors.
Sources of financing inv:
- part of the profit received
— asset restructuring, i.e. sale of part of unused or inefficiently used property and acquisition of additional elements of capital that ensure the expansion of economic activity in the most significant areas
- add. investments of shareholders or other founders.
— loans provided by other organizations
— issue and sale of property. valuable papers
Ultimately, the source of investment may be national income.
Making investment decisions and factors influencing them.
Participants in investment processes:
- savers - those who have a relative surplus of capital and can provide it for some time
- investors - those who use the received capital for investment
— professional intermediaries — mediate the interaction between savers and investors.
Factors, cat. the investor takes into account:
1) return on investment - the higher the return, the more attractive the investment is, other things being equal.
2) risk - the greater the risk, the ceteris paribus. investment conditions are less attractive. To attract investors to riskier investment options, it is necessary to compensate for the higher risk with higher returns.
3) liquidity - the ability of an asset to turn into money over a certain time (the shorter the time, the greater the liquidity) at certain costs (the lower the costs, the greater the liquidity) and with a certain change in the original price (the smaller the change, the greater the liquidity).
4) time - the longer the investment time, the less attractive the investment is, other things being equal. Because over a long period of time, alternative, more profitable investment options may appear. Conversely, additional risk factors may emerge that were not initially considered.
LECTURE No. 10. Investment activity of an enterpriseInvestments occupy a central place in the economic process and determine the overall economic growth of an enterprise. As a result of investment, production volumes increase, income grows, industries and enterprises develop and move ahead in economic competition, taking the lead in the competition and satisfying the demand for certain goods and services to the greatest extent.
The income received is partially accumulated and increased again, further expansion of production occurs, which leads to the prosperity of the enterprise.
This process is repeated continuously.
Thus, investments themselves determine the growth of expanded reproduction generated from income as a result of effective distribution.
Moreover, the more effective the investments, the greater the growth of income, the greater the absolute size of the accumulation of funds that can be reinvested in production.
With sufficiently high investment efficiency, an increase in income can ensure an increase in the share of savings with a full increase in consumption.
The main features of investment activity are
The defining approaches to its analysis are:
1) irreversibility associated with temporary loss of liquidity;
2) expectation of an increase in the initial level of well-being of the enterprise;
3) uncertainty associated with the attribution of results to a relatively long-term perspective.
Although it is clear that productive investment directly determines the increase in production capacity and output, it would be wrong to attribute income growth only to them.
Investments in the sphere of intangible production have a significant impact on this growth, and their importance in further increasing economic potential is increasing.
It is necessary to clarify the role and significance in the reproduction process of such categories as capital investments and capital construction, since the construction sector of the economy accounts for a large share of investment activity.
Attracting investment is one of the most important means of eliminating investment “hunger” in an enterprise. An important step in this area was the implementation of insurance against non-commercial risks.
An important requirement for private investment is a consistent and publicly known set of dogmas and rules, formulated in such a way that potential investors can understand and anticipate that these rules will apply to their activities.
At an enterprise that is in the stage of continuous reform, the legal regime is unstable.
However, in order for investors to make such investments, very serious changes in the investment climate are necessary.
Organization of financing is one of the most important problems in investment activities.
The formation of investment resources is the main initial condition for the implementation of the investment process.
Sources of investment financing are those funds that can be used as investment resources.
A lot depends on the correct selection of sources of financing, this is not only the viability of investment activity, but also the distribution of final income from it, which gives financial stability to the enterprise making the investment.
The composition and structure of investment financing sources depends on the economic mechanism operating in society.
According to the method of attraction, in relation to the subject of investment activity, investment resources attracted from internal and external sources are distinguished.
There are external and internal sources of investment financing at the macro- and microeconomic levels.
At the macroeconomic level, internal sources of investment financing include:
1) state budget financing;
2) savings of the population;
3) savings of enterprises, commercial banks, investment funds and companies, non-state pension funds, insurance companies, etc.
To external:
1) foreign investment;
2) foreign credits and loans.
At the microeconomic level, internal sources of investment include own funds generated by the enterprise to ensure its development.
The basis of the enterprise's own financial resources, formed from internal sources, is the capitalized part of net profit, depreciation, and investments of the owners of the enterprise.
Investment resources of an enterprise attracted from external sources characterize that part of them that is formed outside the enterprise.
It covers both equity and borrowed capital attracted from outside.
This may include government financing, investment loans, funds raised by placing their own securities, and a number of others.
Based on the nationality of capital owners, investment resources generated from domestic and foreign capital are distinguished.
Investment resources generated from domestic capital come in a wide variety of forms and, as a rule, are more accessible to small and medium-sized businesses.
Investment resources generated at the expense of foreign capital mainly ensure the implementation of large real investment projects of the enterprise related to the improvement of equipment and reconstruction.
According to the title of ownership, investment resources are divided into two main types - own and borrowed.
Own sources of investment are the total value of the enterprise’s funds owned by it and ensuring its investment activities.
Own sources of investment financing include:
1) authorized capital;
2) profit;
3) depreciation charges;
4) special funds formed from profits;
5) on-farm reserves;
6) funds paid by insurance authorities in the form of compensation for losses.
Own funds also include funds donated to the enterprise for targeted investment.
The company's own funds, from the point of view of the method of attracting them, can be either internal (for example, profit, depreciation) or external (for example, additional placement of shares).
Amounts raised by the enterprise through these sources are not returned.
The entities that provided these funds, as a rule, participate in the income from the sale of investments on the basis of shared ownership.
Borrowed sources of investment characterize the capital attracted by an enterprise in all its forms on a repayable basis.
All forms of borrowed capital used by an enterprise in investment activities represent its financial obligations that are subject to repayment under predetermined conditions (terms, interest).
Entities that provided funds under these conditions, as a rule, do not participate in income from investment activities.
Considering its capabilities when choosing a source of investment financing, as well as the advantages and disadvantages, the enterprise reduces the likelihood of risk.
Management should consider in more detail the main sources of financing capital investments, analyzing their positive and negative aspects.
Authorized capital
– the initial amount of funds provided by the owner to ensure the statutory activities of the enterprise.
Authorized capital is the main and, as a rule, the only source of financing at the time of creation of a commercial organization.
It is formed during the initial investment of funds.
Its value is established upon registration of the enterprise, and any changes in the size of the authorized capital (additional issue of shares, reduction in the par value of shares, making additional contributions, admitting a new participant, joining part of the profit, etc.) are allowed only in cases and in the manner provided for by the current legislation and constituent documents documents.
When it is created, the founders can invest both cash and tangible and intangible assets into the authorized capital of an enterprise.
At the moment of transfer of assets in the form of contributions to the authorized capital, ownership of them passes to the business entity, i.e. investors lose the right to these objects.
Thus, a participant has the right only to compensation for his share, agreed in advance, within the framework of the residual property, in the event of his withdrawal from the company or liquidation of the enterprise.
But he has no right to return the objects transferred to him at one time in the form of a contribution to the authorized capital.
It follows that the authorized capital reflects the amount of the enterprise's obligations to investors.
But also the authorized capital of an enterprise guarantees the interests of its creditors, determining the minimum amount of its property.
The minimum authorized capital of an open joint-stock company, for some organizational and legal forms of business (its value is limited from below) must be no less than a thousand times the minimum wage (minimum wage) on the date of its registration, and a closed company - no less than a hundred times the minimum wage.
Shares distributed upon establishment of the company must be fully paid within the period specified by the charter, while at least 50% of the distributed shares must be paid within three months from the date of state registration of the company, and the remaining part - within a year from the date of its registration.
Extra capital
- the source of funds of the enterprise, it reflects the increase in the value of non-current assets as a result of the revaluation of fixed assets and other material assets with a useful life of more than 12 months.
All types of fixed assets are subject to revaluation.
It may also include the amount of excess of the actual placement price of shares over their nominal value (share premium of the joint stock company).
The use of additional capital for the purpose of acquisition is prohibited by regulatory documents.
Reserve capital
- can be created at the enterprise either without fail or if it is provided for in the constituent documents.
The creation of reserve (reserve) funds is mandatory for open joint-stock companies and enterprises with foreign capital.
According to Federal Law No. 208-FZ of December 26, 1995 “On Joint-Stock Companies,” the amount of the reserve fund is determined in the company’s charter and should not be less than 15% of the authorized capital.
The formation of the reserve fund is carried out through mandatory annual deductions from profits until it reaches the established amount.
Reserve capital can be used by decision of the meeting of shareholders to cover the losses of the enterprise, as well as to repay the company's bonds and repurchase its own shares in the absence of other funds. Reserve capital cannot be used for other purposes.
Net profit
- the main form of income of the enterprise.
It is defined as the difference between revenue from sales of products (works, services) and its full cost.
Net profit allocated for investment purposes can either be collected in an accumulation fund or other funds of a similar purpose created at the enterprise (for example, a development fund), or reinvested in the assets of the enterprise as undistributed profit balance, which practically does not happen in newly opened enterprises.
Very often, enterprises try to make up for the lack of financial resources by increasing prices for their products.
However, by increasing prices, the company faces certain difficulties due to demand restrictions. They can lead to problems with the sale of products, and then to a decline in production.
This could bring many businesses to the brink of bankruptcy.
Some enterprises, in order to find the necessary resources for investment, constantly raise prices for their products, as a result of which their products become much more expensive than even better ones.
These enterprises find themselves in an extremely difficult situation, from which it is sometimes impossible to get out.
Therefore, product sales become problematic, and the fate of the enterprise is uncertain.
The government is taking measures that will make it easier for companies to generate the necessary financial resources for the development of production, especially since they are now one of the main sources of investment in the economy.
The decision to provide full exemption from income tax on investments, which has been in effect since January 1, 1992, will help expand the range of opportunities for organizations.
This could serve as an important incentive to increase investment activity.
However, given the high level of inflation expectations and the absence of competition for the sales market for manufactured products in many industries, the release of funds to finance capital investments does not in itself have a definite impact on investment decisions.
Inflationary growth has devalued the organizations' own funds received through depreciation charges, and this source of capital investment has actually devalued.
An increase in the cost of fixed assets of organizations and their depreciation charges in proportion to inflation rates makes it possible to increase the sources of their own resources to finance capital investments.
In order to double the sustainability of organizations' own savings, in August 1992 the government decided to revaluate fixed assets to establish their book value in accordance with prices and reproduction conditions.
Therefore, one of the main ways to increase domestic investment activity through regular indexation of the book value of fixed assets could be anti-inflationary protection of the depreciation fund.
The rapid increase in the state budget deficit does not allow us to count on solving investment problems through centralized sources of financing.
If budget resources are insufficient as a potential source of public investment, it will be necessary to move from irrevocable budget financing to lending.
Supervision over the targeted use of preferential loans will be tightened.
To ensure loan repayment, a system of pledging property in real estate, in particular land plots, will be introduced.
Currently, there is a need to maintain the federal infrastructure, create particularly effective structure-forming facilities, overcome the consequences of emergencies, natural disasters, and solve the most pressing economic and social problems.
From the point of view of budget financing, at the stage of recovery from the crisis, the priority areas will be:
1) maintaining scientific and production potential;
2) allocation of public investments to stimulate the development of key agricultural and raw material areas that provide solutions to fuel, energy and food problems;
3) allocation of subsidies for social purposes to underdeveloped areas with a very low standard of living of the population, which do not have the ability to stop its decline on their own.
Market relations in investment activity primarily affect its sources.[1]
Speaking about the sources of investment in general, we can say that they are determined by the level of economic development.
The reduction in gross domestic product by half with a decrease and deterioration in the structure of foreign trade turnover with an increase in the balance of payments deficit speaks for itself. Domestic consumption and savings funds are eaten up by inflation and non-payments, which slows down the reproduction process and economic development.
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