The importance of finance management is such that no one can ignore it, and so, here is an attempt to make you aware about the importance of finance in an economy, and how much is financial health of the economy important for your well being.
Finance plays a very important role in the day to day lives of each individual or corporation. It is a very wide term and it can be said to be the study of the science of managing funds. Usually finance includes the areas of public, personal and business finance. It includes things related to lending, spending and saving money. An important aspect of finance is that individuals and corporations deposit money in a financial institution, especially banks, who in turn lend out money and charge an interest for their services.
Pivotal Roles of Finance
Corporate finance deals with financial decisions which an organization makes, whether it’s investments, analysis of credit, selling of assets or products or acquiring assets. Maximizing corporate value and at the same time managing risks associated with investing in a particular product or project is the main aim of corporate finance. Moreover, corporate finance also studies the short term and long term implications of a decision and looks into matters related with dividends to shareholders’ debt or equity. Matters related to taxes which a corporation has to pay are also taken into consideration when dealing with corporate finance.
Finance for a business can’t be undervalued and it can be regarded as the lifeline of a business which is required for its well being. It acts as a lubricant helping to keep the business running. Whether