FINANCE

 Finance can be defined as the field that largely deals with the science of managing large volume of money associated with large business organizations and government bodies. The key aspect of finance is time value of money. The time value of money speaks about the changing power of a unit of currency and what it can buy for you over a period of time.

Finance can be categorized into three major subcategories:

      1.Personal Finance: The term personal finance is used in terms of an individual or a family which manages its finances in order to take care of their budget, savings, spending etc taking into considerations various risk factors and future events.

      2. Corporate Finance: All Financial activities that primarily deals with maximizing the value for the shareholders of a company through implementation of various short term and long term plans and strategies. Ex- Capital investment decisions, management of current liabilities and assets, inventory control, new capital purchases etc.

      

      3. Public Finance; The financial management dealing with the government expenditures and the ways of paying these expenses through borrowing and taxes.

Finance also provides a clear view of the actual price of the assets based on the risk associated with it and the expected rate of returns.