It is generally understood Finance managing money for your
expenses. In broad terms finance is the science of funds management. Finance
includes saving money and often includes lending money. The general areas of
finance are business finance, personal finance, And public finance.
Finance is also a money budget management. The field of
finance deals with how money is spent and budget. It also deals with the
concepts of time, money and risk and how they are interrelated. Individuals use
finance as personal finance, by governments as public finance, by businesses as
corporate finance, as well as a wide variety of organizations, including
schools and nonprofits. Finance is the need of the global economy today.
Finance types there are mainly two types of financing in
today's economy.
- Personal finance in these financial decisions may involve paying for education, financing durable goods such as real estate and cars, buying insurance, e.g. health and property insurance, investing and saving for retirement. Personal financial decisions may also involve paying for a loan, or debt obligations.
- Corporate finance is the task of providing the funds for the activities of a company. Corporate finance can be classified into two categories. The first is the short-term financing usually involves balancing risk and profitability, while trying to maximize the wealth of the entity and the value of their shares.
Long term funds are provided by ownership equity and
long-term credit, often in the form of bonds. The balance between these forms
of capital structure of the company. A short-term financing or working capital
is mostly provided by banks extending a line of credit.
Another business decision concerning finance is investment,
or fund management. An investment is the purchase of an asset in the hope that
it will maintain or increase its value.
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