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What is it all about?
Financing deals with querying for any financial institution bank, investment company, any person or credit union to lend people money that you promise to repay at some point in future.
In simple words, when someone buys a car if he/she do not have all the cash for it.There must be a solution; The dealer will look for a bank that will finance it for them. When the request is approved, the bank will pay the car dealer the money for the car, and then the bank will send the car owner a bill each and every month. The bank will lend the money if the person agree to pay interest on top of the money gave to him /her. If expressed.In other simple words, financing is borrowing money with a promise to repay that money and some additional fee/ interest, over a period.
Popular Finance Homework Topics
- Accounting Principles
- Payroll Accounting
- Financial Ratios
- Present & Future Value
- Bank Reconciliation
- Financial Statements
- Receivables & Bad Debts
- Bookkeeping Basics
- Fixed Assets
- Revenue Recognition
- Chart of Accounts
- Inventory Accounting
- Cost Accounting
- Variance Analysis
Finance is a wide term that describes two related activities:
The study of how money is managed
The actual process of acquiring needed funds.
The reason behind it is that: individuals, businesses & government entities all require funding to operate, the field is often segregated into three sub-categories: corporate finance, public finance and personal finance, as well.
The scope of financial management involves all kinds of processes and procedures affiliated with managing a company’s cash flow as well as the inventory, fixed assets and debtors, according to Accounting Education.
All the three categories are concerned with activities such as pursuing sound investments, obtaining low-cost credit, allocating funds for liabilities, and banking. Each of the parameters mentioned here has its specific considerations. For instance, individuals, need to provision for retirement expenses, which means investing enough money during their working years & ensuring that their asset allocation fits their long-term plans. A large MNC, on the contrast, may have to decide whether to raise additional funds through a bond issue or stock offering. Investment banks sometimes advise the firm on such considerations and help them market the securities.
In the case of public finance, in addition to managing money for its day-to-day operations; a government body has more social responsibilities than usually. Its goals & objectives include attaining an equitable distribution of income for its citizens and enacting policies that lead to a stable economy.
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