Finance You must have heard this word often. This common colloquial word lives on everyone’s mouth & tongue. People see and speak this word in different forms of finance, business. But this question must have come in your mind (Finance Meaning) What is finance? This word is related to business but how many other meanings does this word have.
Finance means matters regarding the management, creation and study of money and investment . In other words finance means use of debit and credit, security, and investment to finance the current project using future income flows.
“In short finance means the money raised by a firm to run the business”.
Finance means granting debit credit and security to those companies who are in need of money to run a business or those companies who will put the finance into the most productive use.
The institution that grants finance from safe to user are known as financial intermediaries. They are commercial banks, savings banks, savings and loan associations and non banking institutions such as insurance companies, credit unions , financial companies , pension funds etc.
You all know that finance is studied in the subject of economics. Finance is necessary for any person, company or government to work.
Now you will learn about finance In Other words –
Capital is directly related to money & money. Because, for any company, manufacturing unit, institution, start-up to run smoothly, some setup has to be installed. The employee has to pay a salary. All this work can be done with money only.
These requirements can be met with your own investment or there are some institutions that provide loans. Such an institution is called a financial institution.
In simple language, finance or finance is defined as the management of money.
Types of Finance – Finance is divided into four parts.
- Public Finance
- Private Finance
- Personal Finance
- Corporate Finance
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