Solvency of the corporate enterprise

Abstract

Modern business is characterized by turbulence and unpredictability. The position of a company is influenced by internal and external factors. Management has significant opportunities to influence internal factors while it cannot influence external ones. The prerequisite for quality management is timely insight into the strengths and weaknesses of the company. In order for a corporate company to be successful, it is necessary to analyze all elements that guarantee general material stability, good reputation and prospects, as well as a good competitive position in the market, good development and production programs that guarantee a long life cycle and its right strategy. Solvency refers to business analysis that aims to determine and assess the quality of business. It shows how successful a certain company is, so it serves to assess the current financial situation as well as to assess future business and development. The aim of the research is to point out the importance of solvency assessment and to explain how information is collected so that it can be used to avoid business risks.