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What do you mean by finance?
Finance is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money, and investments. Finance also encompasses the oversight, creation, and study of money, banking, credit, investments, assets, and liabilities that make up financial systems.
What are the types of finance?
Finance is majorly divided into three segments: Personal Finance, Corporate Finance, and Public Finance.
What does finance do in a business?
Finance involves managing the firm’s money. The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing. The financial manager’s responsibilities include financial planning, investing (spending money), and financing (raising money).
Why is it important to study finance?
Finance helps students understand the difference between value and price and its role and impact in the business decisions we take in our day to day lives. It also helps us create value and understand the future effects of value today.
What is the main source of finance?
Sources of finance for business are equity, debt, debentures, retained earnings, term loans, working capital loans, letter of credit, euro issue, venture funding etc. These sources of funds are used in different situations. They are classified based on time period, ownership and control, and their source of generation.
What are the two main sources of finance?
The difference between debt and equity finance Two of the main types of finance available are: Debt finance – money provided by an external lender, such as a bank, building society or credit union. Equity finance – money sourced from within your business.
Why is finance an art?
Originally Answered: Why is finance both a science and an art? It is said to be as an art as it identifies, records, classifies, summarises, analysis and interpretate the results of financial transactions. It is said to be as a science because it is based on different accounting concepts and conventions.