5 semester Variant 11 Write any 10 terms with definitions on topics covered. Financial statements

VARIANTS

on the discipline “Finance” for intermediate control 1

5 semester

Variant 11

1.Write any 10 terms with definitions on topics covered.
Financial statements are written records that convey the business activities and the financial performance of a company

Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Financial markets are vital to the smooth operation of capitalist economies.

Commercial enterprise means a building which is used as a part of a business that manufactures goods, delivers services, or sells goods or services, which is customarily and regularly used by the general public during the entire calendar year and which is connected to electric, water, and sewer systems. A commercial enterprise does not include a farm operation.

Commercial interest a commercial interest is any entity producing, marketing, re-selling, or distributing health care goods or services consumed by, or used on, patients. The ACCME does not consider providers of clinical service directly to patients to be commercial interests.

Financial relationships are those relationships in which the individual benefits by receiving a salary, royalty, intellectual property rights, consulting fee, honoraria, ownership interest (e.g., stocks, stock options or other ownership interest, excluding diversified mutual funds), or other financial benefit.

Commercial bank a bank that offers services to the general public and to companies.

Financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets.

Liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. 

The money market is part of the fixed-income market that specializes in short-term debt securities that mature in less than one year. Most money market investments often mature in three months or less.

The capital structure is the particular combination of debt and equity used by a company to finance its overall operations and growth
2.What are the financial relations of the commercial enterprises? Write a detailed answer of 8-10 sentences.
“When conditions are made or imposed between ... two [associated] enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly

An illustration. Par 1.2 gives a free interpretation: "…, the conditions of their commercial and financial relations (e.g. the price of goods transferred or services provided and the conditions of the transfer or provision)…." Are conditions of the relations indeed the same as conditions for transactions? In a next step (par 1.6), the "commercial or financial relations" are summarized as "circumstances". After combining "comparable transactions and comparable circumstances", the focus is subsequently narrowed by the added clarification "i.e. in "comparable uncontrolled transactions"”. It is stated that the "attention is focused on the nature of the dealings between ... members (of an MNE group) and on whether the conditions thereof differ from the conditions that would be obtained in comparable uncontrolled transactions". Par 1.6 continues: "Such an analysis of the controlled and uncontrolled transactions, which is referred to as a "comparability analysis", is at the heart of the application of the ALP." Although this is most likely not the intention, this is nevertheless the explanation for the fact that in the rest of the TPG, focus is virtually exclusively placed on “transactions” and that attention for the "commercial and financial relations", as the necessary context for the transactions, is no longer part of the basic process of dealing with the ALP. Transactions are the materialization of the commercial or financial relations between enterprises. Commercial and financial relationships, both between independent and between associated enterprises, can take many different shapes. They can be incidental, involving one or a limited number of transactions, or can be of long duration, with clear intentions of cooperation. Conditions of transactions will not be comparable categorically with those of similar transactions, but only with those applied for transactions in the context of relationships of a similar type. Furthermore, relationships constitute a different context depending on their capacity investment impact. If one of the parties has invested heavily, e.g., by building a manufacturing plant and hiring a large number of employees, and that investment turns out to be obsolete earlier than foreseen, then the impact on the price (i.e., terms and conditions) of transactions between the parties will be different depending on their type of relationship. Was the relation purely transactional, then it will be the risk of the investing party; is the context a long-term, cooperative relationship, then parties will find a way to share the consequences of the unforeseen event.

When conditions are made or imposed between ... two [associated] enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, etc.”
3.Who are the participants of limited liability companies according to the legislative documents of the Republic of Uzbekistan?

 Limited liability company

A limited liability company shall be recognized as an economic company founded by one or several persons, whose authorized capital (authorized fund) is divided into shares of the sizes determined by the constituent documents. Participants in a limited liability company are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the value of their contributions.

Participants of a limited liability company who have not fully made contributions are jointly and severally liable for its obligations to the extent of the cost of the unpaid part of the contribution of each of the participants in the company.

Legal status of limited and additional liability companies

A limited or additional liability company (hereinafter — the company) acquires the status of a legal entity from the moment of its state registration in the manner prescribed by law.

The Company has the right to act as a founder or otherwise participate in the authorized capital (authorized fund) of other legal entities, create representative offices and branches in the manner prescribed by law.

The company is created for an indefinite period, unless otherwise provided by its constituent documents.

The company has the right to have a round seal containing its full company name in the state language and an indication of the location of the company. The seal of a company may also contain its company name in other languages at the choice of the company.

The Company has the right to have stamps and letterhead with its own company name, its own emblem, as well as a registered trademark and other means of individualization of participants in civil turnover, goods, works and services.

The Company owns separate property, which is recorded on its independent balance sheet, can acquire rights on its own behalf, bear obligations, be a plaintiff and defendant in court.

The company may carry out any activities not prohibited by law.

The company may engage in certain types of activities, the list of which is determined by legislative acts, only on the basis of a license.

The company is liable for its obligations with all property belonging to it.

The company is not liable for the obligations of its participants.

In the event of bankruptcy of a company through the fault of a person acting as a participant, such a person may be held subsidiary liable for his obligations if the property of the company is insufficient.

The state and its bodies are not liable for the obligations of the company, nor is society liable for the obligations of the state and its bodies.

Head of the Department &State Finance& prof. T. Malikov