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What does divestment mean?
Generally speaking, it is to pay taxes. Distribute profits to the owners and pay off all kinds of debts, nothing more. The seemingly "extracted" funds are actually transferred to products through production costs and manufacturing expenses. And then returned to the enterprise after sales.

1. Use of funds: converting monetary funds into fixed assets or related expenses. ? Capital withdrawal: capital withdrawal.

2. Withdrawing the investment project from the funder means withdrawing the funds. There are two kinds of withdrawal of funds: full withdrawal and partial withdrawal. Complete withdrawal refers to complete abandonment of rights and interests; Partial withdrawal often implies some strategic intention.

3. Funds no longer operate in an enterprise, which means that funds leave an enterprise or industry and will not bring any inflow to the enterprise or industry. There are two kinds of withdrawal of funds: full withdrawal and partial withdrawal. Complete withdrawal refers to complete abandonment of rights and interests; Partial withdrawal often implies some strategic intention.

Including: paying taxes and fees, distributing profits to owners, repaying loans and so on. Generally speaking, it refers to paying taxes, distributing profits to owners and repaying various debts. Nothing else. The funds that seem to be "extracted" are actually transferred to products through production costs and manufacturing expenses, and then returned to the enterprise after sales.

Extended data

Meaning and function

Venture capital is a kind of circular investment, which relies on the high capital circulation corresponding to high risk and realizes the appreciation of capital value by constantly entering and exiting venture enterprises.

The significance of venture capital is to support the growth of potential enterprises, so its limited assets must have certain liquidity in order to continuously support new enterprises.

If there is no exit mechanism, it is difficult for venture capitalists to realize the funds invested in venture enterprises after achieving the expected value-added purpose, which will make the assets of venture capitalists stagnate and unable to find new investment targets. Then, this kind of venture capital itself has lost its meaning of existence.

The enterprises invested by venture capital are often relatively "new" enterprises (including restructuring, mergers and acquisitions, etc. ), or a high-tech emerging industrial enterprise, the market also lacks a measure of its own value evaluation.

Because the intangible assets of such enterprises often occupy a high proportion, the evaluation of enterprises needs to look at their future growth. According to the exit mechanism of venture capital, the asset appreciation gained by investors can be used as a more objective market basis, so the market will be more mature and standardized.

Baidu Encyclopedia-Investment Exit Mechanism