Sunday, October 6, 2019
Business Finance Essay Example | Topics and Well Written Essays - 1500 words
Business Finance - Essay Example the society whose sole levers and gears are the different types of business and its organisations that are generating these revenues at a higher interest. But it is to remember that money multiplies money; and then who is sourcing these revenue generating businesses to expand their own operations and other developments. This paper will through light on the sourcing and the using issues of the finance and the business finance respectively. The field of finance refers to the concepts of time, money and risk and how they are interrelated. The term finance may thus incorporate any of the following studies; like the study of money and other assets, the management and control of those assets, profiling and managing project risks, the science of managing money, the industry that delivers financial services. As a verb, "to finance" is to provide funds for business or for an individuals purchases it becomes the act of lending money to a party to meet its requirements. Though the financer receives interest, the borrower pays a higher interest than the financer receives and the financial intermediary that is the financer itself pockets the difference (Jones 2002). This is the simple structure of financing and the glory of this business. A specific example of corporate finance is the sale of stock by a company to institutional investors like investment banks, who in turn generally sell it to the public. Finance is used by individuals and creates personal finance, by governments as public finance, by businesses that is the corporate finance and as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting (Beaney 2005). This is where the finance plays the role of a resource. Finance is one of the most important aspects of any business management. Without proper financial
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