The Impact Of Financial Sustainability Upon The Continuity Of The Economic Unit

Abstract

The research aims at demonstrating the significance of financial sustainability in economic units, as it is considered a relatively recent topic. Financial sustainability is the ability of an economic unit to fulfill its financial obligations without incurring new financial burdens, in addition to its ability to generate self-resources that cover the costs of the economic unit. The financial resources represent the main nerve in the continuity of the unit performance of activity. In order to reach the results required for the research, the two researchers conducted an applied study in the General Company for Food Products by measuring and evaluating the financial sustainability of the company using some financial ratios in addition to evaluating the financial position of the company. The key findings of the research are that financial sustainability and sustainable development both preserve the resources available in the first, the financial resources of the economic unit, and in the latter on a larger level, which is the natural resources available to humanity in general as a main source of energy. As for the key recommendations, it is to raise awareness among government units of the importance of the financial sustainability of economic units in particular, and its application that preserves and develops the resources of the economic unit.