Release time：2021-08-27

Finance

In a world driven by economic intricacies and financial decisions, cultivating a solid understanding of finance is crucial for personal and professional success. This mind map serves as a comprehensive guide to various branches of finance, providing insights into key aspects.

Edited at 2021-08-27 14:08:35

Mikkaella Masakayan

Finance

Mikkaella Masakayan

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Outline

Finance

Financial Management

Planning, organizing, directing, and controlling the enterprise's financial activities, such as procurement and utilization of funds

Seeks to ensure a consistent and adequate supply of funds to the concern, adequate returns to the shareholders, optimum funds utilization, and safety on investment.

Two main function: Estimate the amount of capital required and determine the capital structure.

Related Words/Concepts

ACCOUNTING

As the name implies, finance deals with paying a company's operations, whereas accounting deals with keeping track of financial data in order to report it. In a firm, business finance and accounting are two closely related tasks.

ART & SCIENCE

In addition to its scientific underpinnings, finance also incorporates non-scientific features that can be compared to art, such as the fact that human emotions play a big part in many facets of the financial world.

FINANCE VS ECONOMICS

Econometrics and finance are intertwined, influencing each other's decisions. Economics are important to investors because they have a significant impact on the markets.

Areas of Finance

PUBLIC

Focus: Government's role in economic matters

Includes: Taxation, government expenditures, budget procedures, stabilization policy and instruments, debt issues, etc.

PERSONAL

Focus: How an individual make and spend his money

Includes: budgeting, insurance, mortgage planning, savings, and retirement planning.

CORPORATE

Focus: How company sourced their funds or money

Includes: assets, liabilities, revenues, and debts for a business

Definitions

Has three main types of finance: (1) personal, (2) corporate, and (3) public/government.

Lifeblood of the business

Money management that consists of activities such as investing, borrowing, lending, budgeting, saving, and forecasting.