Define the termsfinanceandfinancial management, and identify the major sub-areas offinance.Finance: the study of applying specific value to things that we own, the services we use, and thedecisions we make.Financial Management: the process for and the analysis of making financial decisions in thebusiness context.There are four major sub-areas of finance.They are:1.Investments.This subarea involves methods and techniques for making decisionsabout what kinds of securities to own, which securities to buy, and how to pay theinvestor back in the form that the investor wishes.2.Financial management.This subarea deals with a firm’s decision in acquiring andusing cash that is received from investors or from retained earnings.3.Financial institutions and markets.These entities work in different ways tofacilitate capital flows between investors and companies.4.International finance.This subarea involves the use of finance theory in a globalbusiness environment.
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Define the termsfinanceandfinancial management, and identify the maj.docx
1. Define the termsfinanceandfinancial management, and identify
the major sub-areas offinance.Finance: the study of applying
specific value to things that we own, the services we use, and
thedecisions we make.Financial Management: the process for
and the analysis of making financial decisions in thebusiness
context.There are four major sub-areas of finance.They
are:1.Investments.This subarea involves methods and techniques
for making decisionsabout what kinds of securities to own,
which securities to buy, and how to pay theinvestor back in the
form that the investor wishes.2.Financial management.This
subarea deals with a firm’s decision in acquiring andusing cash
that is received from investors or from retained
earnings.3.Financial institutions and markets.These entities
work in different ways tofacilitate capital flows between
investors and companies.4.International finance.This subarea
involves the use of finance theory in a globalbusiness
environment.
