Finance
Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use financial income over time, taking into account the risks entailed in their projects. The term finance means the study of money and other assets; The activity of finance is the relevance of a set of techniques that individuals and organizations (entities) use to control their financial affairs, particularly the differences between income and expenditure and the risks of their investments.
An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise assets by borrowing or selling impartiality claims, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary, such as a bank or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary pockets the difference.
Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), etc., as well as by a broad variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of suitable financial instruments, with consideration to their institutional setting.
Finance is one of the most important aspects of business management. Without proper financial planning a new enterprise is unlikely to be successful. Managing money is essential to guarantee a secure future, both for the individual and an organization.
An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise assets by borrowing or selling impartiality claims, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary, such as a bank or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary pockets the difference.
Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), etc., as well as by a broad variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of suitable financial instruments, with consideration to their institutional setting.
Finance is one of the most important aspects of business management. Without proper financial planning a new enterprise is unlikely to be successful. Managing money is essential to guarantee a secure future, both for the individual and an organization.
1 Comments:
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