Study of funds management is actually what we can call Finance. Major areas of finances are personal finance, public finance and business finance. It’s all about saving money and many a times lending money. All finances take place either through an organization or an individual by depositing money in the bank. All organizations and their activities are basically dependent upon finance only.
The financial position of the company is determined by its financial status. The fund of any company helps people and shareholders to invest in that the company because it has the company has the potential to repay their money.
Finance is the study of managing the flow of money. There are various areas of study in finance. These are personal finance, corporate finance and public finance. The organization ties to save money in order to invest it at the correct time and in a right Avenue. Finance person has to take care of risk that exists in the market. These risks are systematic risk and unsystematic risk. Thus, finance deals with time, money and risk. The three are related to each other. Finance managers should take care that the funds are invested in the right direction and the budgeting is done properly. Banks finance the firms, so good financial standing of the company helps them to get loans.
Finance is one of the most important aspects of business management Corporate or the Managerial finance provides funds for the corporation’s activities. Finance managers main aim is too maximize wealth generation that can be achieved through financial planning. Financial Risk management helps to mitigate the risk. Equity financing is also an important part in the finance.
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Finance is the most important subject under the management studies. Finance refers to the managerial activity, which is concerned with planning and controlling of the firm’s financial resources. Finance is mainly a branch of economics. Finance as a subject is of immense interest in both academicians and practicing mangers. In the financial activities of the business organizations their funds acquisition and for manufacturing and other facilities is done in a detailed manner. Finance is a very complex subject for study.
Under the study of finance a large range of subjects are studies, such as capital budgeting, financial management and its concepts, Risk and Return, valuation of bonds and shares, Beta Estimation, The Cost of Capital, Cash flow for investment analysis, financial statement analysis working capital management, cash management, corporate restructuring, inventory management and many more. All these subjects studied under finance required deep knowledge of both theoretical and practical concepts. The study of these subjects is a complex task for the students of management and other academic courses.
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