What Is Development Funding?

Funds refer to the capital used to operate industry and commerce, as well as the materials or currency used by the country to develop the national economy. Funds are expressed in currency and used for turnover and to meet the needs of creating social material wealth. It reflects the socialist production relations based on the public ownership of data. Funds are used in the social reproduction process to create new value and increase the media value of social surplus products. It also refers to fund management, which means that in any one transaction, only a small part of your funds will bear the risk.

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There are many definitions of funds, with the following expressions:
Virtual funds should first be interpreted as prerequisites for registered users of online forums and online games to perform related operations under the prevailing conditions of online and online games. These virtual funds are not real funds, but it is likely to be real Funds to buy, such as Tencent's Q coins, online game game coins, etc., but some virtual funds do not need to use funds to buy, than
Virtual funds
For example, after registering in a certain online forum, you may be given some virtual funds, and you can get more virtual funds by posting discussions in the forum, which can be used as "event funds" that may appear in the future. In a broad sense, there is another Virtual funds are various "points", such as a company's points. After reaching a certain point, you can use the points to get rewards.
The new concept of "virtual funds" proposed by Professor Lang Xianping consists of 4 parts: First, household savings. Common people have few investment channels today, and a considerable portion of household deposits have to flow into the housing market; the second is funds that enterprises should invest without investing. Due to a series of adjustments to foreign investment policies, many corporate funds that originally wanted to make industrial investment entered the housing market because they suddenly could not find investable projects, resulting in a large expansion of housing demand; third, a portion of corrupt funds flowing into the real estate market; and fourth, international hot money Inflow. These funds are unsupervisable, unpredictable and uncontrollable, and bubbles will appear wherever they are hit. The specific amount of these funds is not easy to count, but it is certainly very large. The "virtual funds" here seem to be a little derogatory.
Capital investment
The input of funds refers to the acquisition of funds, which is the starting point of the capital movement. The funds invested in the enterprise include the funds invested by investors and the funds provided by creditors. ). The capital invested in the enterprise forms the assets of the enterprise while forming the owner's equity and liabilities of the enterprise, part of which forms current assets and the other part of non-current assets.
The circulation and turnover of funds is the main component of the capital movement. The use of funds in the production and operation process forms the cycle and turnover of funds, which is divided into three stages: the supply process, the production process, and the sales process.
The supply process is the production preparation process. In the supply process, as the procurement activities proceed, the funds of the enterprise are transformed from the form of monetary funds to the form of reserve funds.
The production process is both the manufacturing process of the product and the consumption of assets. In the production process, before the product is completed, the company's funds are converted from the form of reserve funds to the form of production funds, and after the product is completed, the form of production funds is converted into the form of finished product funds.
The sales process is the realization of the value of the product. During the sales process, the sales of the product earn income, and the company's funds are converted from the form of finished product funds to the form of monetary funds.
It can be seen that with the progress of production and operation activities, the company's funds start from the form of monetary funds and go through the three stages of the supply process, production process and sales process in turn, which are manifested as different existences of reserve funds, production funds and finished product funds Pattern, and finally returned to the form of monetary funds, this movement process is called the cycle of funds. Funds are circulated endlessly, called fund turnover.
Withdrawal of funds
Withdrawal of funds refers to the circulation and turnover of funds withdrawing from the enterprise, including the repayment of various debts, the payment of various taxes, and the distribution of profits to owners.
Fund circulation diagram
The three parts of the above-mentioned fund movement are mutually supportive and mutually-restricted unity. Specifically: without the input of funds, there will be no circulation and turnover of funds; without the circulation and turnover of funds, there will be no debt repayment. , The payment of taxes and the distribution of profits, etc .; without the withdrawal of such funds, there will be no new round of capital investment, and no further development of the enterprise.

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