Study Of The Financial Management Of The Virtual Enterprise

With the development of economic globalization, the era of knowledge economy has arrived, which is represented as IT technology. The market competition among enterprises is growing more and more. Enterprises begin to pay more attention to increasing the external efficiency and hope to enhance business efficiency through integration of external resources. All these have created the opportunity for "Virtual Enterprise" (VE) to be formed which is a new form of organization and management. The formation foundation of VE's is to concentrate of various enterprises' core superiority. Various members coagulate to grasp some kinds of opportunity. They realize to win altogether through integrating various members' core competencies and resources. So the traditional financial management and the theory were already unable to adapt to the new situation. Due to the above, this paper attempts to explore the problems of VE's financial management.Based on the analysis of the Virtual Enterprie's characteristics and operation as well as the influence on financial management, this paper has made the beneficial exploration to the construction of the VE's financial management system. It also has discussed the key problems of VE's financial management—the risk question and the income distribution question.