Methodical Approach to Identification of the Financial and Economic State of an Enterprise

Abstract

The article identifies urgency of the enterprise life cycle theory in the system of managing financial and economic activity of an enterprise, identifies problems and insufficiently developed theoretical issues, namely, identification of the main indicator of the state of an organisation on the life cycle curve, which thoroughly characterises its financial and economic activity. It develops and offers a methodical approach to identification of the financial and economic state of an enterprise. The article analyses, generalises and identifies main sub-systems of an enterprise within the proposed methods. On the basis of analysis of works of scientists the article identifies main indicators that characterise each subsystem of an enterprise and identifies the entropy method, having analysed the existing methods of calculation of an integral indicator, as the most justified approach to calculation of the enterprise life cycle integral indicator.

Keywords

• system
• enterprise
• financial and economic activity
• life cycle