WELCOME

TO THE PRESENTATION
NAME : MD Sazzadul Hasan Mojumder Riad.
Roll : 230217012.
Department : Finance & Banking.
Subject :Business Finance.
Presented to : Mohammad Jashim Uddin.
(Assistant Professor,CoU)
TOPICS OF THE PRESENTATION :
1. What is finance.
2. Function of finance.
3. Legal form of finance.
4. Type of investment.
5. Three function of capital management.
6. What is business risk.
7. Financial risk.
8. Time value of money.
9. Present Value.
10. Future value.
1.WHAT IS FINANCE ?

• Finance is a dynamic field that is essential for the functioning of economies

and societies. It provides the tools and frameworks for individuals and
organizations to make informed decisions about money, investments, and
financial planning.
2.FUNCTION OF FINANCE ?

• The functions of finance are diverse and play a crucial role in managing and
allocating financial resources. Here are some key functions of finance:
1. Capital Allocation.
2. Risk Management.
3. Financial Planning.
4. Resource Mobilization.
5. Investment Decision-Making.
6. Cost Control.
7. Profit Maximization.
8. Economic Stability.
3. LEGAL FORM OF FINANCE ?

1. Sole Proprietorship.
2. Partnership.
3. Limited Liability Company (LLC).
4. Corporation.
5. Nonprofit Organization.
6. Financial Institution.
7. Investment Funds.
8. Government Agencies.
 4. TYPE OF INVESTMENT ?

1. Stocks.(Equities)
2. Bonds (Fixed-Income Securities).
3. Mutual Funds.
4. Exchange-Traded Funds (ETFs).
5. Real Estate.
6. Cryptocurrencies.
7. Savings Accounts and Money Market Accounts.
8. Commodities.
9. Futures.
10. Retirement Accounts.
5. THREE FUNCTION OF CAPITAL
MANAGEMENT ?

1. Capital Budgeting.
2. Capital Structure Management.
3. Working Capital Management.
6. WHAT IS BUSINESS RISK ?

1. Operational Risk.
2. Financial Risk.
3. Strategic Risk.
4. Compliance Risk.
5. Reputation Risk.
 7. FINANCIAL RISK ?

1. Market Risk.
2. Credit Risk.
3. Liquidity Risk.
4. Operational Risk.
5. Strategic Risk.
6. Interest Rate Risk.
 8. TIME VALUE OF MONEY ?

• The time value of money (TVM) is a financial concept that recognizes the idea that
a sum of money has a different value today compared to its value in the future. In
other words, the value of money changes over time due to factors such as interest,
inflation, and the opportunity cost of using funds in different time periods.
There are two main concepts associated with the time value of money:

 Future value.(FV)
 Present value.(PV)
 9. PRESENT VALUE ?

• Present Value (PV):

• Definition: Present value is the current value of a sum of money that is expected to be
received or paid in the future, discounted at a specific rate of interest.
• Example: If you expect to receive $1,000 in 3 years and the discount rate is 5%, the present
value would be PV = \frac{$1,000}{(1 + 0.05)^3}.

Understanding the time value of money is essential for making sound financial decisions, as it
provides a framework for comparing cash flows occurring at different points in time and
facilitates better financial planning and analysis.
 10.FUTURE VALUE ?

• Future Value (FV):

Definition: Future value is the value of a sum of money at a specific point in
the future, taking into account a certain rate of interest or investment return.
Formula: FV=PV×(1+r)n.
Example: If you invest $1,000 at an annual interest rate of 5%, the future
value after 3 years would be FV = $1,000 \times (1 + 0.05)^3.
THANK YOU.