Principal is the original amount of a loan, deposit or investment before interest is calculated. As a whole, the principal of an enterprise (including fixed capital and working capital) is simultaneously and spatially juxtaposed at different stages, and is manifested in different forms of principal occupation. Every professional form of principals is constantly changing from the previous stage to the next stage, 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, 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, operation and foreign investment activities. So as to make full use of monetary resources and comprehensively improve the economic benefits of enterprises.
Principal is called present value in financial management, which means that a certain amount of cash at a certain point in the future is converted into present value. 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 After three years, the principal and interest and 65,438+033.10 yuan will be withdrawn in one lump sum.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.
Generally speaking, capital refers to the monetary expression of the value of property and materials in the national economy. Under the condition of planned economy, funds are usually divided into financial funds and credit funds according to their distribution forms, and capital construction funds, production and operation funds and other special funds according to their uses.
Company Law of People's Republic of China (PRC) Article 1 This Law is formulated for the purpose of regulating the organization and behavior of companies, protecting the legitimate rights and interests of companies, shareholders and creditors, maintaining social and economic order and promoting the development of socialist market economy.
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.
Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.