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1. Principal is the original amount of loan, deposit or investment before interest is calculated. As a whole, the principal of an enterprise (including fixed capital and working capital) is simultaneous, and it is spatially juxtaposed at different stages, showing different forms of principal occupation. Every professional form of principals is constantly changing from the last stage to the next stage, and from one form to another. Principal requires financial institutions not only to implement the policy of "developing economy and ensuring supply" to ensure the capital needs of enterprises' production and operation and foreign investment activities, but also to practise economy, rationally allocate principal and give full play to the regulatory role of finance in production and operation and foreign investment activities. So as to make full use of monetary resources and comprehensively improve the economic benefits of enterprises.
2. The principal is called present value in financial management, which means that a certain amount of cash is converted into present value at a certain point in the future. For example, a cash deposit of RMB 65,438+000 with an annual interest rate of 65,438+00%. After three years, the principal and interest and 65,438+033.10 yuan will be withdrawn in one lump sum. In this example, 100 yuan is the principal, 33. 10 yuan is the interest, and the amount after deducting the interest tax is the profit. Profit is divided into gross profit and net profit.
3. Principal refers to the funds advanced by various economic organizations and individuals for production and business activities. The economic organizations mentioned here include national financial institutions (state-owned asset management institutions and intermediary management companies), production and circulation enterprises, commercial banks, commercial insurance, non-bank financial institutions (securities companies, investment banks, financial asset management companies) and enterprises. The individuals mentioned here include individual industrial and commercial households, farmers engaged in commodity production and circulation, and investors. The prepaid funds mentioned here mean that these funds are not consumed after being put into production and circulation, but recovered from the income obtained and require appreciation. Its characteristic is that under the condition of market economy, due to the capitalization of various production factors, the principal is often called capital. Therefore, from the perspective of national economy, the funds belonging to the principal mainly include national principal, enterprise principal and family (individual) principal.