Finance
Finance Write For Us – Finance is an area of economy and the administration of companies that are engaged in the study of obtaining capital resources (i.e., the financing) and transactions involving your investment and its saving, whereas risk and the uncertainty that this implies. Therefore, these types of resources are known as financial resources. you can send us an email at contact@Inbusinessworld.com.
Financial studies are interested in the administration of money. That is the type of decisions that the different economic agents (the State, the enterprises, and individuals) can make to manage their resources better, betting on their multiplication and fulfilling their Objectives Corresponding.
The world of banking, indebtedness, business investment, and the stock market is part of the interests of finance.
Characteristics of finance
Finance is characterized by the following:
They deal with the administration of money and capital goods: banking and savings, investments (bonuses, actions, etc.), loans, etc.
As an area of knowledge, finance lies between economics, administration, and accounting.
They handle vital concepts such as risk, profit, interest rate, investment costs, etc., which describe the functioning of the world of money.
They allow the improvement of money management for both public and private entities, individuals or families, like large corporations.
It rely on the knowledge of other auxiliary disciplines, such as economics, accounting, statistics, and mathematics.
Types of finance
Finance can be divided into four leading groups:
Corporate Finance: Focuses on the study of gaining and managing companies’ resources. Among his areas of study are:
- In which productive projects should be invested.
- When to distribute dividends.
- What are the optimal financing options?
Personal Finance: It refers to the study of gaining and managing the resources of relatives or individuals. Among their areas of study are:
- How to choose a moneymaking career or profession
- Optimal management of labour income and indebtedness.
- Making investment and savings decisions (such as, for example, when to buy a house or where to put our savings).
Public finance: It deals with the study of obtaining and managing the financial resources of State institutions. Among his areas of study are:
- Getting resources through taxes.
- Investment in profitable public projects.
- The choice of mechanisms for the restructuring of resources.
- Proper management of the government shortage and extra.
International finance: It refers to the study of financial transactions at the international level. Among their areas of study are:
- Indebtedness overseas.
- The effects of exchange rate variation on profitability.
- Movements of foreign capital.
- The risk was inherent in investing in a given country.
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