The Conceptual Framework Related to the Enterprise?s Performances

• Author: Alexandrina Ghintuiala
• Position: Danubius University of Galati, Economic Sciences Faculty
• Pages: 585-591

The Conceptual Framework Related

to the Enterprise’s Performances

Ghintuiala Alexandrina

Danubius University of Galati, Economic Sciences Faculty,

alexandrinaghintuiala@univ-danubius.ro

Abstract: The performance is c haracteristic to a state of competitiveness of the enterprise which must not be

mistaken for the indicators which describe it. From a quantitative p oint of view, the financial performance

versus the result is defined from the perspective of the enterprise’s profitability. It is imposed the transition

from the evaluation at historical prices to the evaluation at the correct value, f rom the abandonment of the

concept of the past and present per iod’s result to the concept of performance respectively, which gives the

future perspective of the enterprise. Regarding the predictive capacity of the financial performance indicators,

it can be noted that the exploitation’s result, the treasury flow and the added value serve the future treasury

flows.

1. Dimensions in defining the concept of financial performance

Performance is a state of competiti veness of the entity, which ensures a durable presence of the said

entity on its markets by achieving its strategic objectives. How can this performance be achieved? “by

engaging the enterprise in the process of lasting development, which implies creating value for the

shareholders, satisfying the customers and the employees, respecting the natural and the social

environment.”1

The term “performance” is used with a certain degree of imprecision nowadays. In spite of the fact

that it is abundantly used with multiple meanings, the term “performance” is rarely defined, even in

works where is considered the main study subject. To define performance you must start from the

notion of the enterprise’s performance itself, from the cause of its economic recognition, from the

performance’s measurement and from the way in which it is presented in financial situations.

It is generally accepted that performance2 represents a special accomplishment in a domain of

activity/field. This definition leads to the conclusion that “the performance is not an observation, it is

accomplished or it is built.” (Bourguignon, 1995).

The enterprise’s performance is addressed more to the enterprise’s possibility to make profit. From

here results the potential size of the resources that the enterprise will have and control in the future3.

1 Jianu Iulia, “The Evaluation, The Layout And The Analysis Of The Enterprise’s Performance. An Approach From The

Perspective Of The International Standards Of Financial Reporting”, CECCAR Ph. H., Bucuresti, 2007, p.123.

2 DEX, Univers Enciclopedic Ph. H., Bucuresti, 1996.

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