EFFECT OF TIME VALUE OF MONEY ON PROFIT DISTRIBUTION IN JOINT VENTURES

Abstract

Under the promotion of the world trade organization, trade cooperation between countries has become the mainstream of world economic development. By joining the WTO, It is conducive to fully sharing the benefits of international cooperation and co-developing with the world's advanced economy and technology, will help Indonesia's economy growing steadily. At the same time in the life the time value of money is a very important and easily ignored problem. Many individuals and enterprises tend to ignore this problem in their daily life and financial management, which leads to the depreciation of personal assets and the difficulty of capital turnover of enterprises. While the profit rate of the Indonesian side increases every year, the total profit of the company is not as much as that of the foreign side, and the profit control of the joint venture is one of the important factors affecting the profit level of the company. This thesis assumes that the joint venture profit distribution program analysis as an example, research the effect of time value of money in joint ventures. And discusses the countermeasures of the enterprise and the government.