FINANCE II at IOB
What is FINANCE?
Finance is the study and discipline of money, currency and capital assets. It is related with, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services.
Overview
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).
Frequently Asked Questions
What is finance and examples?
Finance is defined as to provide money or credit for something. An example of finance is a bank loaning someone money to purchase a house.
What do you mean by finance?
Finance, of financing, is the process of raising funds or capital for any kind of expenditure. It is the process of channeling various funds in the form of credit, loans, or invested capital to those economic entities that most need them or can put them to the most productive use.
What are the 3 types of finance?
The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.
What is finance and examples?
Finance is defined as to provide money or credit for something. An example of finance is a bank loaning someone money to purchase a house.
Why should I study finance?
In other words, finance helps us make better decisions with our money and accounting enables us to keep track of it. You use finance in innumerable everyday financial scenarios, such as: Making a budget for your groceries. Deciding how much of your paycheck you want to save and how much you want to invest or spend.
What are the 2 types of finance?
External sources of financing fall into two main categories: equity financing, which is funding given in exchange for partial ownership and future profits; and debt financing, which is money that must be repaid, usually with interest.
What is finance and its importance?
Finance is the functional process of business which helps to meet its goals and objectives with responsibilities for acquiring funds for the companies, managing the funds within the companies and planning for the expenditure of funds on various business aspects.
What is the benefit of finance?
Both consumers and businesses benefit from financing programs, because financing gives customers more buying power and flexibility, and it helps businesses boost sales and improve cash flow.
Why is finance important in life?
Personal finance can help us increase our cash flow. Keeping a track of our expenditures and spending patterns enables us to increase our cash flow. Tax planning, spending prudently, and careful budgeting ensure that we do not lose our hard-earned money on frivolous expenses.
What is difference between finance and accounting?
The difference between finance and accounting is that accounting focuses on the day-to-day flow of money in and out of a company or institution, whereas finance is a broader term for the management of assets and liabilities and the planning of future growth.
Is finance a good career?
A career in finance is exciting and rewarding, and, usually, very lucrative. It attracts young people who are hugely ambitious but who also have a head for economics, accounting and the ability to quickly and intuitively grasp and process complex financial concepts and data. Finance is all about managing money.
Is finance a good degree?
Yes, a finance major is a good major for many undergraduate students. The Bureau of Labor Statistics is projecting 5% job growth in business and financial occupations over the next 10 years. Financial advisor, budget analyst, and investor relations associate are some common careers in the field.
What is the difference between money and finance?
Money is a part of finance, but finance includes several other things as well. Money acts as a medium of exchange, store of value, a unit of account, and sometimes it can also act as a standard for deferred payments. Finance: This is the study of money and involves planning to use it.
Why do you like finance?
1. It offers a fast-paced, continuously challenging career. The global balance of business, finance and economics shifts every day which is what makes it so fast-paced, varied and keeps everyone on their toes.
How do you answer why do you finance?
I want to work in finance because I enjoy the challenging nature of the industry and how fast-paced it is. I thrive under pressure. I enjoy problem-solving and analyzing data, but also realize that finance is not just about the numbers, it is about the people too.