types of finance .pptx

fiancecounsellor 49 views 17 slides Oct 17, 2022
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About This Presentation

Just like how a body cant stand without a backbone, a business cant stand without finance. Let’s learn about the fundamentals of finance. Why it’s essential."


Slide Content

What Are The Types Of Finance

Table of content Hello Introduction What is finance? What Are The Types Of Finance?

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Finance is the foundation of the basic activity of all businesses and organizations. In manufacturing and marketing, finance functions in the same way as blood functions in the human body. There are various fundamentals of finance which help a business or a person to survive.

What Is Finance?

Finance is raising capital and funds for any expenditure. It is the process of conducting different types of funds in the form of loans, credit, and investment capital to those economic institutions that most need them and putting them to the most productive use. It is a term for creating, managing, and studying money.

Types Of Finance Personal Finance Public Finance Corporate Finance

What Is Personal Finance?

Personal finance is managing an individual's funds and helping her/him achieve their goals in terms of savings and investments. It is specific to individuals, and the strategies depend on the individual earnings, goals, time frame, requirements, etc.

Personal finance includes: Investment and wealth accumulation goals. Preparing for long-term expenses and purchases involving a large amount. Paying for a loan and debt obligations. Protection against uncertain and unforeseen personal events. Transfer of wealth across generations of the family. Penalties and subsidies. Preparing for retirement.

What Is Public Finance?

It is related to states, municipalities, and provinces. In short, the government required finance. Public finance includes long-term investment decisions related to public institutions. It considers factors like distributions of resources, income, and economic stability.

Public finance includes: Tax management. The source of revenue for the public institution. Issuing debts for the public project. Determining the budget process and source of funds. Identifying the expenditure required by the public company.

What Is Corporate Finance?

It is about funding the company expense and building the organization's capital structure. Corporate finance deals with searching the source of funds and its channelization, also the allocation of funds for resources and hence increasing the value of the company by improving the financial position.

Corporate finance includes: Risk management and the tax consideration. Stock issuance while going public and listing on the stock exchange. Identifying relevant objectives, constraints, and opportunities. Capital budgeting. Employing standard business valuation techniques and real valuation. Acquisition and investment in stock and other assets. Identify the funding source in the form of equity, creditors, debtors, and shareholders' funds.

Thank you click the below link if you want to know more about finance: fundamentals of finance