Finance is the term that we usually relate with a business. This is indeed one of the most important terms that lay the foundation of a company, state, organization and an individual. This is perhaps the key element that can help in imparting success to an organization. Why I am saying this is because the thing is that finance is the term that we can actually relate with funding. And as we all know that if we are going to run an organization, the most important thing that matter is the funding part. We have seen that many organizations are not able to sustain in the market because they lack proper funding.
Finance is basically that branch of economics which mainly deals with the concepts like funds management, resource management, money and capital management. Many big organizations and companies are somewhat dependent on this branch of economics for their success rate. The main thing is that organizations use some sorts of permutations and combinations of the financial methods in order to do a needful analysis of all the key elements that can help the organization in gaining popularity.
There are three important sub disciplines of finance namely public finance, personal finance and corporate finance. In the next few lines, I am going to explain the above mentioned areas of finance.
- Public Finance: Public Finance is one of the most important fields of study. Public Finance is the sub branch of economics that mainly focuses on the role of government in the economy. It mainly deals with the income and expenditure of the government that is how the government manages the income in uplifting the overall standard of a society.
- Personal Finance: Personal Finance is the field of study that mainly deals with the management of funds at an individual’s level. It mainly focuses on the management of an individual’s income and expenditure. Personal finance helps an individual to prepare for their future expenses by managing their present inflow of money.
- Corporate Finance: Corporate finance as the name suggests deals with the financial management of an organization. It mainly focuses on managing the funding activities of an organization in order to increase its value in the market.
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