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1、精选优质文档-倾情为你奉上企业负债经营的问题与对策外文资料翻译The advantages and disadvantages of debt managementI. INTRODUCTIONLiabilities can raise the money. Enterprises in the case of insufficient funds, debt management may use more power to expand enterprise scale and economic strength, short time to improve the operation ef
2、ficiency of enterprises and competitiveness. Any a enterprise not only in the case of insufficient funds need indebtedness, in funds under the condition of relatively abundant indebtedness is also very necessary. Even if an enterprise internal capital accumulation, more by its own capital alone ente
3、rprise scale and he can use the amount of money is limited. Through responsible business, and control can be obtained more the amount of capital. As long as reasonable use these funds organization and coordination, expand the business scope of business and the way of thinking, improve the technology
4、 and equipment, reform process, the introduction of advanced technology, updating equipment, expand the scale of enterprise, broaden the scope of business, improve the quality of the enterprise, can strengthen enterprise economic strength and competition ability. II. The advantages of debt managemen
5、tDebt management is a commodity to a certain stage of economic development. The inevitable product of market economy is the only way for the development of enterprises. Enterprises to develop, relying on internal accumulation and its own funds to meet the needs of enterprise development, not only do
6、es not allow time and the number would still be difficult to meet the demand, it will lose business opportunities and constraints of the rapid development of enterprises. Rational use of debt, to enable businesses to obtain financial leverage effect. Improper use may increase the enterprises financi
7、al risk, so that enterprises involved in financial crises. Tax debt can play a role. Because under the current system, the financial liabilities included in the cost of interest, and before the deduction of income tax, it can generate tax so that small business income tax, thus increasing the equity
8、 capital gains. The higher interest charges on, the greater the tax section, so that businesses with liabilities using its own funds for all businesses compared to the cost increase, reduction in profits. The amount of income tax be reduced, thereby reducing the amount of income tax paid to reduce t
9、he tax burden on enterprises. Liabilities of business enterprises can reduce the cost of capital. Operating requirements of the liabilities of enterprises regularly pay interest and principal payments due to creditors for a smaller investment risk and therefore required a low rate of return on inves
10、tment. In addition, the role of the above-mentioned tax and therefore the cost of debt capital is usually less than the cost of equity capital. Liabilities of business can benefit from inflation. Liabilities are generally due to debt service, an increase in the inflation rate, the original liability
11、 of the real purchasing power will decline, after the enterprise by reducing the amount of debt service, in fact, is to shift the consequences of currency depreciation to the creditors. Debt management is beneficial to maintain control of companies. In the enterprise facing a new financing decisions
12、, such as if to find stock way to raise equity capital, not only the cost of capital than debt financing, will also bring equity scattered, affect the existing shareholders for the control of the enterprise. But if to issue bonds or borrow from Banks and other financial institutions capital, to rais
13、e debt capital, the creditor has no right to participate in the companys operating decisions, while expanding enterprise capital source does not affect the control of the enterprise, is conducive to maintaining existing shareholders control enterprise production and business operation activities. Th
14、e balance of financing in comparison with other modes of financing, financing a short time, to spend a small price. Borrowing in particular, after consultation of the loan amount, repayment terms, with the period shall change, but also for solution through consultations with greater flexibility. .Th
15、e disadvantages of debt management Debt to maintain the existing shareholders under the premise of control brought about by the rapid growth of wealth. Thus, capital markets, as well as for business managers have entrepreneurial spirit and readiness to take risks is a positive innovation as an impor
16、tant sign of the measure, that is, the level of debt. However, enterprises in the process of debt as a result of the business environment there are many uncertain factors, especially in pre-borrowing the idea of operating conditions is not conducive to business development, will result in the risk of debt. Run the risk of liability comes mainly from the financial risk and business risk issues. Financial risk is increasing due to the use of d
