Finance involves managing and distributing funds for individuals, businesses, and governments. It includes lending money and managing finances. Finance has several principles including risk and return, time value of money, cash flows, and diversification. There are different types of finance such as personal finance, corporate or business finance, and public/government finance. Financial services play an important role in economies by facilitating the flow of assets through banks, investment firms, and other financial institutions. Instruments like stocks, bonds, and loans are used to engage in financial activities related to borrowing, lending, and investments.
2. Finance is when we grant or give some
funds and manage the funds for some
individual, business, and government.
Moreover, It includes distributing the money
and managing the finances for someone or
lending the funds. It is a general term, which
is defining two activities all together at the
same time.Firstly, it’s the study of managing
money. And secondly, it’s the actual process
of the funds required by some individual or
business to get their work or business grow.
In this we can learn what is finance?
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3. Principles of Finance?
• Risk and Return
• Time Value of Money
• Profitability and liquidity
• Cash Flow Principle
• The Hedging Principle of Finance
• Principles of diversity
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4. Different types of Finance
• Personal Finance- From a personal point of
view, It is the management of someone’s
income, which he/she is earning, or of
someone’s expenses, their investments they
have made in the market, and obligations.
• Corporate Finance (Business)- As the name
suggests, Corporate Finance is the type of
finance used from a business perspective.
• Public or Government Finance- As the
name ‘public finance‘ suggests, this type of
finance helps us deal with the public’s
financial issues.
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5. Types of Financing?
• Behavioral-It depends upon the
human’s decisions, whether it may be
social or psychical but when this
judgment affects the investments.
• Social- A philosophy of making and
managing investments that have a
social impact and social benefit on
society (in addition to an economic
benefit).
• Non-profit- Non- Profits do not have
stockholders, and they do not require
to create any earnings or economic
benefit.
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6. Financial Services?
Financial services are different from financial
goods, like financial service provided by any
payment provider while it transfers and accepts
the funds between recipients and payers. It
involves account settlements through debit and
credit cards, checks, or any electronic funds
transfer.The finance service sector plays an
important role in the section of the economy. It is
used to drive the nation’s economy with the help
of the free flow of assets. Financial services involve
various financial firms, such as investment houses,
insurance companies, accounting services, banks,
finance companies, lenders, and real estate
brokers.
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7. Instruments used in Finance?
A company or individual requires the
financial instrument to avail of finance
services. The financial instruments
include economic activities, and it is a
contract between two different parties.
The finance instruments use for
borrowing and lending purposes, and
investment purposes. The instruments
can be classified as Derivative
instruments and Cash instruments.
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8. The financial activities are related to the
government, individuals, and businesses’
transactions and initiatives to achieve specific
economic aims. These are the activities that
include the outflow and inflow of money. An
example of it is selling and buying assets (or
product), initiating loans, issuing stocks, and
managing accounts.Whenever a company makes
debt payments by selling the shares, both these
activities are termed financial activities.
Governments and individuals are also included in
financial activities, like levying taxes and taking
loans, that are further particular monetary goals.
Financial Activities?
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9. Problems During Finance Assignment
• English Proficiency
• Referencing
• Subject Knowledge
• Formatting The Assignment
• Plagiarism
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10. Why do we need to study finance?
It will just not help you in careers
in the financial sector but also be
helpful in your day to day life.
Furthermore, finance revolves
around planning and analysis;
studying this subject makes you
more financially literate and
enables you to make better
financial decisions.
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