Finance deals with fund and its management. It encircles areas of business, personal and public as well as each and every aspects of related to money. It works with financial figures and capital management and helps to start and operating the business. In finance, we study money, assets in the form of money, financial resources, transactions, arrangement and settlement of money/finance, time and risk factors. Finance also can be understood as lifeline of industries and economy of nations without which we can’t do anything.
Finance plays an essential role in business and provides basic infrastructure of business. It help to generate new revenues and income for organization and instructs the management to spend money so that organization can grow properly and rapidly without wastage of its financial resources. Usually finance comes under management and accounting subject and studies the management of money in easily defining terms. It can be categorize in three parts— Business or corporate finance, personal finance and public finance. In addition to we can study it in more sub-branches such as financial management, economics, strategy, accounting, markets, mathematics, experimental finance and quantitative behaviors etc. In its study we learn about arrangement, investment or consumption of money for further uses. It guides us to know about investment of money, credit and debt policies, budgeting policy, marketing planning and annual financial reports as Balance Sheet, etc.
Finance is mostly used to prepare monetary policies for business or organization so that we can utilize money in more efficiently manner to gain maximum possible profits. With the help of finance we can make budget for estimated requirement of fund and can prepare final calculation as balance sheets. Finance helps us to understand the financial infrastructure of company/organization and suggests improving through its right consumption.
Briefly finance can be defined as the most important and primary requirement of a business, which needs lot of efforts and investment abilities to utilize it. It keeps a vital importance in business including all the walks of life and teaches us the right uses of funds so that we can invest it for business’s profit.