1.

Finance

in my opinion, finance is a broad phrase that encompasses banking, leverage or debt,

credit, capital markets, money, and investments. Finance, in its most basic form, refers to money

management and the act of obtaining necessary finances. Money, banking, credit, investments,

assets, and liabilities are all part of financial systems, and finance is responsible for overseeing,

creating, and studying them.

Financial Management

It means planning, organizing, directing and controlling the financial activities such as

procurement and utilization of funds of the enterprise. It means applying general management

principles to financial resources of the enterprise.

Cash

currency or coins that can be used to exchange goods, debt, or services. Sometimes it

also includes the value of assets that can be easily converted into cash immediately.

2. Areas of Finance

Public Finance That is concerned with expenses and income federal government patterns and

the different effects they have on the financial situation.

Corporate Finance Deals with purchasing.as well as money management required in the

workplace.
Personal Finance This includes money management, as well as saving and investing.

Budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate

planning.

3. Cash on Hand an important part of running a responsible business and influences numerous

decisions. If you wish to increase your revenue, you might want to reconsider the concept of

cash on hand.

Examples: You can pay Utilities, Rent

Cash in Bank The cash on hand is the cash balance that’s accessible. This means that it refers to

all cash regardless of where it may be located.

Examples: Ordinary Check, Cashier’s Check

Cash in Fund tend to be the safest form of investment. They invest in cash deposits, like a bank

account, with a specified level of interest

Examples: Travel Fund, Change Fund

4. Explain/discuss why holding cash is important in the business

It is important because business must create enough cash from its operations to cover its

expenses while still having enough left over to repay investors and expand. While a company's

earnings can be manipulated, its cash flow provides insight into its true health.
5.

1. be frugal in spending money.

2. don't buy if you don't need it.

3. budget for yourself.

4. invest for yourself.

5.save for in case of emergency.