deals with how individuals prepare for financial emergencies, protect against premature death and
property losses, and accumulate wealth over time.
study of how individuals, institutions, governments, and businesses acquire, spend, and manage money
and other financial assets.”
the strategic planning, organising, directing, and
controlling of financial undertakings in an organisation or an institute. I
process in which an asset's earnings, from either capital gains or interest, are reinvested to generate
additional earnings over time.
interest on interest
increasing value of an asset due to the interest earned on both a principal and accumulated interest.
Discounting is the process of determining the present value of a payment or a stream of payments that
is to be received in the future.
core principle of finance holds that provided money can earn interest, any amount of money is worth
more the sooner it is received.
basic financial concept that holds that money in the present is worth more than the same sum of money
to be received in the future.
1. Consumer ability to purchase goods and services.
he amount of goods and services that can be purchased with a unit of currency
The ability of a person or entity to endure for a long period of time, even through rough times or
situations.
legally recognized payment instrument used to fulfill a financial commitment. In other words, it is an
economic medium that is accepted by the legal system.
A commercial bank is a financial institution which performs the functions of accepting deposits from the
general public and giving loans for investment with the aim of earning profit.
Insurance companies are a type of “non-bank” financial institution that sell policies that provide
protection from various kinds of risks.
A financial institution that controls assets and disburses income to people after they have retired.
a business firm that publishes newspapers
In general, the board makes decisions as a fiduciary on behalf of shareholders.
A board of directors is essentially a panel of people who are elected to represent shareholders
The board is responsible for protecting shareholders’ interests, establishing policies for management,
oversight of the corporation or organization, and making decisions about important issues a company or
organization faces.
Business firms may have to look into the welfare of its workers.
And the organizations must follow the laws of governments’ to run the businesses smoothly and making
sure there is a level playing field.
Since businesses are strongly affected by public policies, it is in their best interest to stay informed about
public policies and to try to influence governmental decision making and public policy.
Personal finance is about meeting personal financial goals,
PERSONAL FINANCE. This is a branch of finance that deals with how individuals prepare for financial
emergencies, protect against premature death and property losses, and accumulate wealth over time.
PUBLIC FINANCE. This is a branch of finance that involves public institutions and governments, and
deals with the role of the government in the economy, allocation of resources in accordance with the
budget constraints of the government, and governmental effects on efficient allocation of resources,
distribution of income, and economic stabilization.
ENTREPRENEURIAL FINANCE. Relates to commercial businesses, is the study of how growth-driven,
performance-focused, early-stage firms raise financial capital and manage operations and assets.
CORPORATE FINANCE. Related to large corporations and corporate organizational structures, it is the
study of the methods and practices in managing the financial resources of a company and involves
financial planning, asset management, and fund-raising decisions to enhance the value of business
Corporate finance includes financial activities pertaining to running a corporation
Entrepreneurial finance is the process of making financial decisions for new ventures