Research On Expansion Finance Risk Of Private Enterprises

With deeply restructuring the economy, non-state-opened company has gradually become one of the most important components of our national economy However, according to the data collection, the average lifetime of the private enterprises in our country is merely 3.5 years long。Those enterprises which last over 5 years has occupied 8.6%of all, no mentions for those last over 10 years。There are tons of reasons for this phenomenon, one of the particular would be haphazard expedition。Enterprises expedition is a must-have and necessary step for a successful business。 Unfortunately, incensement in asset appreciation value and profit does not equal to a good business development.. Therefore, expansionary financial risk in haphazard expedition leads to a dead-end for the private enterprises, even though they experienced glory period before。In this essay, I’m going to respectively analyses the definition, essence and category of enterprises expansion and expansionary financial risks, combining with co-related theories, which includes the enterprise development theory, the enterprise competence theory, economies of scale theory, the theory of plurality management, the eternal merger with profit and loss theory, the financial crisis theory, etc Based on the foundation of the matured enterprise development theory, take quoted company (TCXC) as an instance, the essay would be divided into two mainlines, one is the practice of enterprise development strategy, the other is for the financial condition variation, in the same time spectrum, reflect the expansionary financial risk generated from the expansion and how it effects the firm.. Lastly, with my own comprehension, I propose a financial early warning system, which emphasizes the necessary on the precautionary measures of the expansionary financial risk。...