Alay-ay, Princess C.

4FM-2

1) Explain fully the concept of finance.

 Finance is a broad term that describes the activities related to banking, leverage or debt, credit, capital
markets, money, and investment. Finance essentially stands for money management and the process of
obtaining the necessary funds. Finance also includes support, creation and study. of money, banking, loans,
investments, assets and liabilities that make up financial systems. Many of the basic concepts in finance
originate from microeconomic and macroeconomic theories. One of the most fundamental theories is the time
value of money, which essentially states that a dollar today is worth more than a dollar in the future.

2) Bring out the importance of finance.

 It is not a secret that every business needs money to operate. Whether you are running a service-based or a
product-based business, you’ll need capital if you want to make a profit. You may choose to self-fund your
business, or you may need to turn to external funding methods to finance your business such as grants, loans
and credit. Finance is a broad term that describes the activities related to banking, leverage or debt, credit,
capital markets, money, and investment. Finance essentially stands for money management and the process of
obtaining the necessary funds. Finance also includes supervision, creation and study. of money, banking,
loans, investments, assets and liabilities that make up financial systems.

3) It is often said that financial activities hinge on money management. Do you agree with this point of view?
 Yes, because money management refers to the processes of budgeting, saving, investing, spending, or
monitoring the use of capital by an individual or group. The term can also refer to the narrower field of
investment and portfolio management.

4) “Financial accounting is essential of a stewardship nature."

 Stewardship is an ethical accounting term that places the responsibility on the management of an organization
to take care of business and to provide stakeholders with reliable information about business resources
through financial reporting. On the other hand, the usefulness of decision is a concept related to the
preparation of annual financial statements where a company tries to provide better information taking into
account the relevant decision makers.

5) What is business finance? Explain its significance.

 Business finance refers to the funds business owners use to meet their needs, including starting a business,
raising funds to finance the business, obtaining finance to purchase capital for the business, or to cope with a
sudden liquidity crisis the company. Well-known loan providers are behind you and provide financing to meet
your business needs. The significance of business finance is a company with good corporate finance will take
less time and effort to get the business started. With trade finance, owners can buy the raw materials needed
for production. The company can easily pay off its debts and other payments with the help of corporate
finance. Uncertain risks and contingencies can be addressed with business finance in hand. The company's
good financial standing will attract a talented workforce, it can also use highly efficient technology with a
solid financial background.

6) How can you classify finance?

 You can classify finance through personal finance is specific to an individual’s situation and activity,
corporate finance refers to the financial activities related to running a corporation, usually with a division or
department set up to oversee those financial activities, and public (government) finance includes taxing,
spending, budgeting, and debt-issuance policies that affect how a government pays for the services it provides
to the public.

7) How is finance related to other disciplines?

 Apart from economics and accounting, finance also draws-for its day-to-day decisions on supportive
disciplines such as marketing, production and quantitative methods. And, finally, the tools of analysis
developed in the quantitative methods area are helpful in analyzing complex financial management problems.