Reserve Function in Enterprise

Reserves occupy an important place and play a big part at the enterprises financial management system. Problem of reserves also belongs to principle matter of strategic management they expresses through creating the enterprises competitive position. Reserves fulfill many of various functions in the enterprises. Reserves permit to avoid the risk accompanying the economic activity of each enterprise; they create to the firm a chance of effective development and opportunities of protection of owners’ business.
Many enterprises are interested with the income stability and the survival in the capital market. The reserves can be then the insurance against the economic threats and risk. Therefore, the reserves are more and more perceived as a symptom of financial enterprises’ protection.