A Group Limited Financial Control

With the development of socialist economy regime, the Chinese corporations present a trend of collectivizing. Due to a series of preferential policy, the enterprise groups have been playing the predominant role. Having changed national economy framework and economy pattern 1, the group influences the management manner and the financial policy of corporations. By reason of increasing scale expansion and system complication, enterprise group financial control has been a difficult problem which befuddles group leaders. Therefore, how to dominate group members and to command the managers, especially how to build up the group financial control has been a question for discussion which is worth paying attention to in the process of collectivization.The paper consists of four chapters. In chapter 1 the paper brings forward the background, significance and research method of financing control. The basic concepts and features about collectivizing and financial control are expounded in chapter 2. At the same time, the paper design at the financial control model of group which forms the theory base and starting point of the paper. As practical experience of the author, financial control situation of A group is elaborated in chapter 3. Finally the paper presents some improved proposal of group financial control for A group in chapter 4.Directed by the basic disciplinary of Modern Management, the paper expounds some problems of group financial control, applying theory and means of financial management. The author focused emphasis on financial control of group management and indicated financial control contents, moreover the financing system which is easy to operate comes into being. The originality of the paper is that financial forewarning system is supposed to establish. Based on financial information, the system makes it possible that potential financial crisis is supervised and forecasted by observing some possible changes of forewarning index.