Finance Assignment Help- Introductory Paragraph
Finance is a broader term which refers to the management of money, acquiring of funds and numerous other activities associated with it viz. investing, borrowing, lending, funding, budgeting and paying dividends.
It basically emphasises on all the activities pertaining to the control and planning of different financial resources. Finance can be considered as the lifeblood of an organisation without which all the other activities will come to a halt.
In accordance to Gitman, Finance can be defined as:-
“Concerned with the process institutions, markets and instruments involved in the transfer of money among individuals, business and governments.”
Finance is broadly divided into a) Personal, b) Corporate and c) Government which in turn encompasses many different categories such as Corporate Finance, International Finance, Financial theory, Behavioral Finance, Personal finance.
Corporate Finance which is an area of finance which primarily deals with the capital structure of a corporation. It aims at maximizing the value of a firm and is applicable to products, services, management and other areas of business as well.
International Finance includes the study of exchange rates and their effect on different economies. In simpler terms it is the study of Finance from an international perspective encompassing the different economies of the world and impact of financial fluctuations.
Behavioral finance covers the aspect of Psychology in Finance. It defines how the psychology of an investor plays a crucial role in the overall decision making process.
Personal Finance is characterised by one key concern wherein the individual needs to protect himself against unexpected and unforeseen events.
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