Acquired Helplessness Syndrome in Monofunctional Systems Experiencing Multicrisis: Mechanisms Overcoming Challenges in Resilient Circular Economy

Introduction. This study examines the issue of acquired helplessness syndrome (AHS) in monofunctional socio-ecological-economic systems, which are formed due to external armed aggression. The lack of integrated solutions covering demographic, social, economic, ecological, psychological, and institutional aspects limits the effectiveness of regeneration processes, reduces territorial competitiveness, and hinders development. Aim and tasks. This study aims to develop an integrated conceptual and methodological model for overcoming AHS by combining circular economy tools, the resilience paradigm, and cognitive rehabilitation approaches. Results. The analysis revealed interrelated demographic, economic, environmental, social, institutional, and psychological determinants of AHS that form sustainable barriers and risks to the restoration and modernisation of monofunctional systems (MFS). Using expert assessment and a matrix of relationships, the weighting coefficients of the influence of key determinant groups on socio-ecological-economic regeneration and rehabilitation were quantitatively assessed. Critical barriers, threats, and risks underlying the manifestations of SPB in MFS were identified. This approach made it possible to develop practical mechanisms for stabilisation and recovery, integrated into a holistic conceptual model, to form adaptive strategies for spatial development in a multi-crisis situation. A universal algorithm for restoring the stability of the MFS is proposed, ensuring competitiveness, adaptability, and inclusive territorial development, consistent with international post-crisis recovery practices. Conclusions. The study confirmed that overcoming the AHS in monofunctional socio-ecological-economic systems requires integrating demographic, socio-ecological-economic, psychological, and institutional components into a single management system. The developed model and algorithm can serve as a universal methodological tool for the adaptation of various types of territorial entities in the future. The proposals contribute to restoring the cognitive and social activities of local communities and increasing their resilience to multidimensional threats. Prospects for further research are related to testing model solutions in various regional contexts, assessing their effectiveness, and developing digital tools to support management decisions in the regenerative development and rehabilitation of MFS

Assessment of Economic Greening Efficiency in Water Resource Management

Introduction. Climate change, water depletion, environmental pollution, and rising economic activities in water use demand greener production. This emphasises the need for efficient methods and the assessment of economic greening in water use for sustainable development by advancing a sustainable blue economy. Aim and tasks. The study assesses the environmental efficiency of water use in Ukraine by analysing economic and environmental indicators. This study seeks to develop scientifically grounded methodological recommendations for improving enterprises' water use management. Results. This study conducted an economic and environmental analysis of water use across Ukraine’s economic sectors based on statistical data for 2022. The analysis utilised indicators such as water productivity by sector, economic productivity per unit of polluted wastewater, and share of capital investments in wastewater treatment within the total environmental protection investments. The results show that water, sewerage and waste management companies, which are natural monopolies, impact pollution, water abstraction and water resources. These enterprises were responsible for 72% of all the volume of polluted wastewater emitted and 35.28% of all water abstraction. The water productivity (USD 0.29/m³) and economic productivity (USD 1.85/m³) per unit of polluted wastewater were the lowest among all sectors. This indicates that the sector consumes a large volume of water relative to its economic contribution and exerts a significant adverse environmental impact owing to the high level of wastewater pollution. However, the sector’s share of capital investments in wastewater treatment within its total environmental protection investments was 59.76%. Conclusions. Based on the economic and environmental analysis of water use in the sectors of the Ukrainian economy, it is recommended that the level of influence of each enterprise in the sector on the state of water resources be assessed. Methodological recommendations for assessing the level of greening of economic activity in water use have been developed, consisting of four blocks: (i) assessment of water consumption efficiency; (ii) efficiency of wastewater management; (iii) compliance with regulatory requirements and social responsibility; (iv) assessment of innovations in the sphere of water use. Additionally, the calculation of an integrated indicator has been proposed, along with its interpretation according to an evaluation scale.Introduction. Climate change, water depletion, environmental pollution, and rising economic activities in water use demand greener production. This emphasises the need for efficient methods and the assessment of economic greening in water use for sustainable development by advancing a sustainable blue economy. Aim and tasks. The study assesses the environmental efficiency of water use in Ukraine by analysing economic and environmental indicators. This study seeks to develop scientifically grounded methodological recommendations for improving enterprises' water use management. Results. This study conducted an economic and environmental analysis of water use across Ukraine’s economic sectors based on statistical data for 2022. The analysis utilised indicators such as water productivity by sector, economic productivity per unit of polluted wastewater, and share of capital investments in wastewater treatment within the total environmental protection investments. The results show that water, sewerage and waste management companies, which are natural monopolies, impact pollution, water abstraction and water resources. These enterprises were responsible for 72% of all the volume of polluted wastewater emitted and 35.28% of all water abstraction. The water productivity (USD 0.29/m³) and economic productivity (USD 1.85/m³) per unit of polluted wastewater were the lowest among all sectors. This indicates that the sector consumes a large volume of water relative to its economic contribution and exerts a significant adverse environmental impact owing to the high level of wastewater pollution. However, the sector’s share of capital investments in wastewater treatment within its total environmental protection investments was 59.76%. Conclusions. Based on the economic and environmental analysis of water use in the sectors of the Ukrainian economy, it is recommended that the level of influence of each enterprise in the sector on the state of water resources be assessed. Methodological recommendations for assessing the level of greening of economic activity in water use have been developed, consisting of four blocks: (i) assessment of water consumption efficiency; (ii) efficiency of wastewater management; (iii) compliance with regulatory requirements and social responsibility; (iv) assessment of innovations in the sphere of water use. Additionally, the calculation of an integrated indicator has been proposed, along with its interpretation according to an evaluation scale

Strategic Audit of Resource Utilisation and Management Efficiency in the National Economy

Introduction. The decisive role of strategic audits is revealed in optimising the use of national resources in the Republic of Kazakhstan and promoting sustainable economic development through detailed and systematic analysis of strategic audit processes. This involves improving resource management methods and promoting sustainable economic development through a detailed and systematic analysis of the strategic audit processes. A comprehensive analysis of strategic audits will help identify reserves for sustainable economic growth based on assessing its impact on resource use efficiency. Aim and tasks. This study evaluated the influence of strategic audit methodologies on the efficiency of national resource use in Republic of Kazakhstan. This study aims to develop and evaluate strategic audit methodologies that improve the efficiency of national resource use in the Republic of Kazakhstan and optimise resource management. Results. The study focuses on key indicators such as GDP growth, export-import ratio, and investment in technology based on secondary data. The study demonstrated the importance of these procedures for effective industrial and resource management by assessing the impact of strategic audits on resource consumption, industrial production forecasts, and gross regional product (GRP) estimates using time series, regression and correlation analyses. Correlation analysis between the volumes of industrial production and economic indicators shows a strong relationship, which is confirmed by the multiple correlation coefficient (R) of 0.989134 and the determination coefficient (R2) of 0.978386. This means that fluctuations in such key economic factors as GDP growth and technological investment can explain 97.84% of the changes in industrial production. The regression model shows statistical significance with an F-statistic of 407.3994 and a p-value of    8.37E-09, confirming its reliability and strong predictive ability in predicting the development of the Republic of Kazakhstan economy. Conclusions. This study highlights the importance of establishing and implementing a strategic audit methodology in public administration and lays the foundation for future resource management and policymaking research. A strategic audit is critical to effective resource management in the Republic of Kazakhstan and can accelerate economic growth and industrial competitiveness. Strategic audits support sustainable development by providing data for rational resource management and contribute to improved environmental sustainability.Introduction. The decisive role of strategic audits is revealed in optimising the use of national resources in the Republic of Kazakhstan and promoting sustainable economic development through detailed and systematic analysis of strategic audit processes. This involves improving resource management methods and promoting sustainable economic development through a detailed and systematic analysis of the strategic audit processes. A comprehensive analysis of strategic audits will help identify reserves for sustainable economic growth based on assessing its impact on resource use efficiency. Aim and tasks. This study evaluated the influence of strategic audit methodologies on the efficiency of national resource use in Republic of Kazakhstan. This study aims to develop and evaluate strategic audit methodologies that improve the efficiency of national resource use in the Republic of Kazakhstan and optimise resource management. Results. The study focuses on key indicators such as GDP growth, export-import ratio, and investment in technology based on secondary data. The study demonstrated the importance of these procedures for effective industrial and resource management by assessing the impact of strategic audits on resource consumption, industrial production forecasts, and gross regional product (GRP) estimates using time series, regression and correlation analyses. Correlation analysis between the volumes of industrial production and economic indicators shows a strong relationship, which is confirmed by the multiple correlation coefficient (R) of 0.989134 and the determination coefficient (R2) of 0.978386. This means that fluctuations in such key economic factors as GDP growth and technological investment can explain 97.84% of the changes in industrial production. The regression model shows statistical significance with an F-statistic of 407.3994 and a p-value of    8.37E-09, confirming its reliability and strong predictive ability in predicting the development of the Republic of Kazakhstan economy. Conclusions. This study highlights the importance of establishing and implementing a strategic audit methodology in public administration and lays the foundation for future resource management and policymaking research. A strategic audit is critical to effective resource management in the Republic of Kazakhstan and can accelerate economic growth and industrial competitiveness. Strategic audits support sustainable development by providing data for rational resource management and contribute to improved environmental sustainability

Strategic Risk Management of Digital Transformation in the Economic Security of Industrial Enterprises

Introduction. Digital transformation has become a determinant factor influencing enterprises’ economic security, especially during crises and global concurrences. Despite its numerous advantages, digitalisation poses new risks, such as cyber threats, regulatory instability, and information leaks. Digitalisation as an infrastructure for innovation has become a strategic priority, primarily through the extension of digital government services, cloud resolutions, and metadata analytical tools to support the economic development of industry enterprises. Aim and tasks. This study aims to develop an integrated system of strategic risk management for digital transformation in industry enterprises’ economic security to minimise economic losses, increase adaptiveness to digital changes, and eliminate risks in industry enterprises’ economic security. Results. This study analyses modern approaches to ensuring economic security: systemic, risk-oriented, resource-oriented, and integrated approaches. The analysis revealed that only 25.6% of IT enterprises utilise Big Data analytics, while 7.1% employ AI technologies, highlighting the substantial untapped potential for further digital transformation. This study developed a structural model of a digital economic security management platform, including risk analytics, threat management, cyber protection, monitoring, and reporting. A formalised risk estimation model was built, considering financial, operational, and external factors. An integrated approach is suggested to build a digital platform for the management of enterprises’ economic security, which combines risk-oriented methods, cyber-protection, and big data analytics. Conclusions. This study proposes an approach for digital transformation in economic security management, featuring module architecture to monitor, forecast, and respond to threats. It presents formalised module architecture and a platform structural model for economic security monitoring, comprising four subsystems: financial, operational, risk-oriented, and external factors. The model enables rational resource allocation, threat forecasting, and adaptive decision-making in post-conflict scenarios. Enterprise digital transformation in strategic management and economic security is a key requirement for restoring, strengthening, and safeguarding the national interest

Analysis of the Financial Management and Business Performance Implications of Income Tax Accounting Policy

Introduction. Amid economic instability, an increasing tax burden, and changing legislation, developing an effective accounting policy that optimises tax liabilities is crucial. Accounting policy in forming corporate income tax is a multifunctional tool that allows for taking into account tax risks, increasing financial transparency, and facilitating the development of an effective strategy for managing costs and financial resources. Aim and tasks. This study examines the theoretical, practical, and legal aspects of income tax accounting policy to develop a model for determining the corporate income tax base and assess its impact on financial management and business performance. Results. A model for forming an accounting policy aimed at determining the corporate income tax base based on the instruments of the tax system and accounting has been developed. The model ensures a balanced tax burden, compliance with state requirements, and legitimate tax reduction through an optimal choice of accounting methods. The structure of the regulatory framework is presented, and the impact of accounting policy on income tax revenues on Ukraine's budget and the state's fiscal stability is analysed. Although macroeconomic fluctuations significantly affected tax revenues (particularly the decline in 2022), the model contributed to a 34.3% increase in revenues to the state budget of Ukraine (+845.8 million euros) from 2019 to 2023. The most substantial growth was recorded in 2021 (+35.9%), coinciding with the active application of elements of the optimised accounting policy. This indicates the model's ability to adapt to a favourable economic environment and maximise the tax potential of enterprises. Conclusions. The structure of the legal framework for accounting policy ensures increased transparency of accounting processes and efficiency of income tax administration in compliance with key accounting and taxation principles. Implementing this structure allows not only the elimination of inconsistencies between accounting and tax standards but also the development of a unified methodological approach to determining the corporate income tax base. The introduction of a model for accounting policy will allow the optimisation of tax obligations while ensuring transparency and legality in interaction with tax authorities

Strategic Innovative Management and Sustainable Development of Industrial Enterprises

Introduction. Amidst the dynamic changes in the competitive environment, strategic management of innovative development is a decisive factor in ensuring the stability and sustainable development of industrial enterprises. Despite the importance of innovative development, many enterprises face problems implementing an effective innovation strategy and lacking an innovative culture due to successfully managing projects with a high share of research and development (R&D). Aim and tasks. This study aims to analyse the factors that influence the effectiveness of strategic management in the innovative development of industrial enterprises and to form a case for modelling business processes by assessing the cost component of R&D and its components. Results. The results of the study show that sustainable development of an industrial enterprise is possible under conditions of high-quality strategic management (“Technology Roadmapping” of industrial innovations and the “Open Innovation” model). The effectiveness of strategic management in the development of an industrial enterprise depends on factors such as the development of an innovation culture, investments in innovation processes, the ability of the enterprise to adapt, and the availability of information necessary for making strategic decisions. According to the results obtained in Ukraine, there is an increase in the volume of spending on scientific experiments and developments by 2.1% in 2022 compared to 2018, while spending on applied research increased by 35.3%, with a decrease in spending on scientific experimental developments by 13.1%. According to the results of calculating the correlation coefficient, it was found that there is a close relationship (0.913) between the cost of implementing innovations in production and the cost of R&D, which is the basis for coordinating the modelling of scientific and technical activities and business processes at the regional economy level. Conclusions. During this research, the features of creating a technological map of innovation at an industrial enterprise were considered, and the open innovation model was adapted to the operating conditions of an industrial enterprise. Considering that the innovative basis of industrial content is formed in different regions of Ukraine with different dynamics, a recommendation was made regarding using interregional cooperation tools to form economic models for the sustainable development of industrial enterprises.Introduction. Amidst the dynamic changes in the competitive environment, strategic management of innovative development is a decisive factor in ensuring the stability and sustainable development of industrial enterprises. Despite the importance of innovative development, many enterprises face problems implementing an effective innovation strategy and lacking an innovative culture due to successfully managing projects with a high share of research and development (R&D). Aim and tasks. This study aims to analyse the factors that influence the effectiveness of strategic management in the innovative development of industrial enterprises and to form a case for modelling business processes by assessing the cost component of R&D and its components. Results. The results of the study show that sustainable development of an industrial enterprise is possible under conditions of high-quality strategic management (“Technology Roadmapping” of industrial innovations and the “Open Innovation” model). The effectiveness of strategic management in the development of an industrial enterprise depends on factors such as the development of an innovation culture, investments in innovation processes, the ability of the enterprise to adapt, and the availability of information necessary for making strategic decisions. According to the results obtained in Ukraine, there is an increase in the volume of spending on scientific experiments and developments by 2.1% in 2022 compared to 2018, while spending on applied research increased by 35.3%, with a decrease in spending on scientific experimental developments by 13.1%. According to the results of calculating the correlation coefficient, it was found that there is a close relationship (0.913) between the cost of implementing innovations in production and the cost of R&D, which is the basis for coordinating the modelling of scientific and technical activities and business processes at the regional economy level. Conclusions. During this research, the features of creating a technological map of innovation at an industrial enterprise were considered, and the open innovation model was adapted to the operating conditions of an industrial enterprise. Considering that the innovative basis of industrial content is formed in different regions of Ukraine with different dynamics, a recommendation was made regarding using interregional cooperation tools to form economic models for the sustainable development of industrial enterprises

Lacustrine Ecosystems of the Steppe Dnipro Region: Typology, Ecological Status Assessment and Conservation Value

Introduction. Lacustrine ecosystems are crucial and irreplaceable in biodiversity conservation and provide specific ecosystem services. Although systematic long-term studies on the inventory and typology of lakes worldwide have been conducted, the issue remains poorly understood in the Steppe Dnipro region of Ukraine. Although lacustrine systems are vulnerable and characterised by significant diversity, this requires early environmental assessment and implementation of management plans to ensure their conservation. Aim and tasks. This study aimed to develop a typological scheme for open-type lake ecosystems in the Steppe Dnipro region with a set of typological criteria that can be combined to perform various applied environmental tasks, including the assessment of the ecological state of water bodies, inventory, environmental monitoring, and study of the dynamics of lake systems in the context of climate change. Results. The regional typological scheme was developed based on international and regional experience in the field of ecosystem classification (New Broad Typology for European Rivers and Lakes). The criteria are based on the generalisation of long-term studies of lake ecosystems in the region as components of the regional ecological network. In total, 53 criteria were identified, and a separate typological scheme with fewer criteria was developed for man-made reservoirs. The typology was adapted for use in GIS projects, where each criterion has a range of values. Tabular examples of the application of the typological scheme to identify typologically similar water bodies and for the rapid assessment of their ecological status are presented. Conclusions. The regional typological scheme allows for the distinction of water body types by various combinations of criteria. In practice, it is convenient to quickly create samples of lakes that are similar in certain respects for specific environmental or economic tasks. Further work with the scheme involves filling in the dataset, refining the parameters, and creating lake clusters using cluster analysis algorithms. After verification, the typological scheme can be transformed into a public web portal with the functions of an open database of data on lake-type reservoirs (with the possibility of updating and supplementing) and used to assess the ecological status and track current changes in the ecosystems of lakes and man-made reservoirs in the region

Comparative Approach and Risk Factors in Business Valuation of Shares in Non-Public Companies

Introduction. This study examines the methodological considerations involved in applying the comparative approach and incorporating risk factors when assessing shares in the capital of non-public companies. The lack of open market information significantly complicates the objective assessment of the value of such companies, particularly in the Bulgarian market. Aim and tasks. This study aims to derive the value of a share of a non-public company by comparing it with public companies and making necessary adjustments with a discount for size and specific risk. Results. This study applies a comparative approach to the valuation of companies listed on the Bulgarian capital market based on economic indicators for 2021-2023. The value of a company's share was determined based on financial multiples (IC/RI, IC/EVA, ROE, etc.) and a comparative approach, with adjustments for uncontrollability, liquidity, company size, and specific risks. Based on the calculated multiples, companies with higher profitability and efficiency indicators (ROE, ROA, and ROIC) demonstrated better financial stability and competitiveness. For example, ROE values ranged from 0.09 to 0.84, ROA from -0.013 to 0.28, and ROIC from 0.008 to 0.64, with the best performers showing consistently positive results. In contrast, companies with poor or negative performance across most ratios may face higher risk exposure and ineffective management. This is evidenced by extremely low or negative values for IC/RI (–68.99 to 14.42) and IC/EVA (–1,066.39 to 20.11), reflecting inefficient capital allocation and weak value creation. Negative ROA (–0.012) and low ROIC (0.008 to 0.039) suggest potential operational inefficiencies. Conclusions. The comparative approach to business valuation enables the estimation of the value of a privately held (closed-type) company by applying appropriate adjustments to the financial data of comparable publicly traded (open-type) companies. This study proposes an algorithm for determining a company’s share when considering controlling/non-controlling, the degree of liquidity of a block of shares, size, and specific risk through a comparative valuation approach. Applying such an algorithm in valuation practice is primarily based on the valuer’s professional experience. It can be advantageously used when valuing privately held companies.Introduction. This study examines the methodological considerations involved in applying the comparative approach and incorporating risk factors when assessing shares in the capital of non-public companies. The lack of open market information significantly complicates the objective assessment of the value of such companies, particularly in the Bulgarian market. Aim and tasks. This study aims to derive the value of a share of a non-public company by comparing it with public companies and making necessary adjustments with a discount for size and specific risk. Results. This study applies a comparative approach to the valuation of companies listed on the Bulgarian capital market based on economic indicators for 2021-2023. The value of a company's share was determined based on financial multiples (IC/RI, IC/EVA, ROE, etc.) and a comparative approach, with adjustments for uncontrollability, liquidity, company size, and specific risks. Based on the calculated multiples, companies with higher profitability and efficiency indicators (ROE, ROA, and ROIC) demonstrated better financial stability and competitiveness. For example, ROE values ranged from 0.09 to 0.84, ROA from -0.013 to 0.28, and ROIC from 0.008 to 0.64, with the best performers showing consistently positive results. In contrast, companies with poor or negative performance across most ratios may face higher risk exposure and ineffective management. This is evidenced by extremely low or negative values for IC/RI (–68.99 to 14.42) and IC/EVA (–1,066.39 to 20.11), reflecting inefficient capital allocation and weak value creation. Negative ROA (–0.012) and low ROIC (0.008 to 0.039) suggest potential operational inefficiencies. Conclusions. The comparative approach to business valuation enables the estimation of the value of a privately held (closed-type) company by applying appropriate adjustments to the financial data of comparable publicly traded (open-type) companies. This study proposes an algorithm for determining a company’s share when considering controlling/non-controlling, the degree of liquidity of a block of shares, size, and specific risk through a comparative valuation approach. Applying such an algorithm in valuation practice is primarily based on the valuer’s professional experience. It can be advantageously used when valuing privately held companies

Investment Risk Management in Major Stock Exchanges and SME Markets of Emerging Economies

Introduction. Small and medium enterprises (SMEs) are crucial in the economy by providing jobs, contributing to GDP, efficiently providing products and services where economies of scale are not needed and creating cash flows. However, SMEs encounter certain obstacles, with financial constraints being the major ones. SME markets have been perceived as another opportunity for SMEs to obtain external financing.  Aim and tasks. This study aims to analyse the interactions between major stock and SME markets in emerging economies, focusing on China, India, and Indonesia. Results. The diagonal BEKK and DCC-GARCH models analyse the transitions between these stock markets. The study findings offer compelling evidence of dynamic conditional correlations across all markets and illustrate significant volatility spillovers among the SME markets. This correlation is evident both in the short and long periods. The evidence indicates that small- and medium-sized market volatility significantly affects larger markets. The findings reveal a substantial interplay between the major and SME stock markets in emerging economies, including China, India, and Indonesia. According to the diagonal BEKK and the DCC results, investors should not expect significant diversification benefits by including primary and SME market instruments in their portfolios. Investors should closely monitor the co-movements and transitions between these markets to optimise their portfolio diversification strategies. Conclusions. Creating an environment and conditions that promote the growth of SMEs and improve resilience through specific fiscal alternatives, enhancing access to financing, and upgrading market infrastructure are essential. This study found substantial interplay between major and SME stock markets. Policymakers should be aware that SME market fluctuations influence larger stock exchanges and destabilise macroeconomic conditions, such as economic stability and growth. Therefore, regulatory actions that project the need and operational efficiency of stock market segments should be implemented to prevent adverse effects. For instance, transparency and risk management can stabilise SME stock markets to avoid volatility in larger markets

Assessing Strategic Planning in Postmodern Organizations: A Case Study in the Public Sector

Introduction. Different sectors of the economy adopt a dynamic approach to the role of strategic planning, presenting specific arguments for its application as a management tool and the rationale behind measuring its effectiveness. Research gaps remain, as justifying the relevance of strategic planning continues to be important for postmodern organisations. Aim and tasks. This study presents an instrument for managers that allows them to evaluate the results of strategic planning and thereby justify the need for strategic planning. This study explores gaps in the current practice of strategic planning in the public sector and predicts opportunities for improving performance by focusing on public organisations. Results. An empirical study was conducted at the level of a single-purpose public sector organisation. The empirical study was divided into three parts: studies of the desired and achieved state of the organisation’s performance quality, a set of rationally composed quantitative and qualitative research methods was selected for the latter, and finally, a synthesis of research results using the formula for assessing the maturity of strategic planning activities. The calculated average maturity score (2.71) of the managerial activity components in the chosen organisation indicates that its strategic planning maturity is at Level 3 (completed). To reach Level 4, the goals and tasks of the projects must be comprehensively aligned with the strategy, and project success should be measured based on compliance with the strategy concerning all stakeholders. Conclusions. An empirical study of strategic planning in a public sector organisation based on an integral methodology showed that the process was at an average level of maturity. The need for a link between strategy and projects was identified as a relevant gap in the literature. This coherence facilitates effective risk management regarding the logical connection between tasks and their implementation, compliance with the implementation of goals with the norm, and the coincidence of the views of the organisation and its stakeholders on the quality of activities. Key issues include the mission’s formal nature, bureaucratisation of the process, and stakeholders’ poor awareness of project results. To move to the highest level, full strategy and project synchronisation and assessment of their success through the prism of stakeholder satisfaction are necessary