Financing and narrow financing are often confused in practice and have the same meaning.
Detailed description of financing:
1, the business activities of enterprises to raise funds from financial institutions or financial intermediaries by various means;
2. The essence of mining right management is mining right financing and mining development;
3, refers to the holders and demanders of monetary funds, direct or indirect financing activities;
4. It means that under the condition of socialized mass production, the adjustment of monetary funds is an effective way and means to adjust the surplus and deficiency among social and economic subjects;
5. Financing in a broad sense refers to an economic behavior in which funds flow between holders to make up for deficiencies. This is a two-way interactive process of funds, including the integration of funds (source of funds) and financing (use of funds). Narrow financing only refers to the integration of funds;
6. It refers to the flow of funds between the supplier and the demander, which is a two-way interactive process, including both the integration and withdrawal of funds.
7, refers to the enterprise from the relevant channels in a certain way to obtain the funds needed for business activities.
Financing is an activity that includes both raising funds from outside the enterprise and arranging funds from inside the enterprise, which leads to changes in the scale and composition of enterprise capital and debt, including both cash inflows and cash outflows.
Including issuing stocks and accepting invested capital, distributing cash dividends, obtaining and repaying bank loans, issuing and repaying corporate bonds, etc.
In growing enterprises, internal financing is often difficult to meet the needs. This requires enterprises to carry out extensive external financing, such as issuing stocks, bonds, using commercial credit, bank loans and so on.
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