Types of finance

Financial management

1. MPC AUTONOMOUS COLLEGE BARIPADA PRESENTATION ON TYPES OF FINANCE PRESENTED BY SUDIPTA KUMAR PATRA ROLL NO 16 PRESENTATION SUPERVISOR MISS MONALISHA MOHAPATRA DEPARTMENT OF MBA

2. CONTENTS FINANCE FINANCIAL ACTIVITY TYPES OF FINANCE DIFFERENCE CONCLUSION

3. FINANCE Finance is all about to the allocation and management of money and includes activities such as investing, borrowing, lending, budgeting, saving and forecasting.

4. FINANCIAL ACTIVITY The financial activities are related to the government, individuals, and businesses’ transactions and initiatives t achieve specific economic goals and it include the outflow and inflow of money.

5. TYPES OF FINANCE

6. PUBLIC FINANCE Public finance related with the the allocation of funds and money by government into different areas. Public finance is the study of finance related to government entities. it deals with the role of government income and expenditure in the economy.

7. OBJECTIVES Identifying the expenditure required by the public entity. The sources of revenue for public entity Determining the budgeting process and source of funds. Issuing debts for public projects Tax management

8. EXAMPLES Infrastructure spending(roads, hospitals, etc) Income tax Sales tax Property tax Social security and insurance Gross national product Supply of money International trading Employment National debt National budget

9. PRIVATE FINANCE Private finance is the management and analysis of the financial activities of an individual, household, business enterprise etc.

10. OBJECTIVES Protection against unforeseen and uncertain events Preparing for expenses or purchases involving a huge amount Investment and wealth accumulation goals Identifying the source of funding Savings for future

11. EXAMPLES Savings Investment Insurance Banking Personal loans Tax management Fixed deposits Retirement planning Real estate planning etc.

12. BUSINESS FINANCE The term business finance defined of “finance business activities”. It is composed of two words BUSINESS & FINANCE.

13. CLASSIFICATION OF BUSINESS FINANCE

14. BASIS PUBLIC FINANCE PRIVATE FINANCE Income and expenditure adjustment Income adjusted according to expenditure Expenditure adjusted according to income Borrowing Can borrow both internally and externally Can borrow externally Currency ownership Controls currency wholly Has no right over currency Present vs future income Investment done for long term benefits Short term benefits expected Objectives To create social benefits To create profits Acquire of revenue Revenue can be forcefully acquired through taxes Can’t be forcefully acquired Big and deliberate changes Can make instant change on income deliberately Has no ability to make instant changes deliberately

15. CONCLUSION Finance is the life blood of business. Without finance neither any business can be started nor successfully run. In private finance ,individual or household can postponed or avoid certain expenses if they are unnecessary or avoidable. However, in case of public finance the government cannot avoid or delay certain expenditures, especially expenditure on defence, agriculture,research or public administration.