Finance is a French word originated around 18th century. At that time it refers to the management of money but in today’s world it has got a bigger prospect. It is not confined to that single term. Finance is a way of managing resources like assets, money, investments etc. In present economic world, we can’t imagine that it plays a crucial role in such large scale. In other terms, it provides the resources needed by the businesses in order to perform their operations. Industries and businesses acquire it in form of funds and with proper utilisation convert it into their profit.
Some of the attributes of Finance are:-
• It provides investment opportunities for the businesses and individuals in order to achieve maximum profit. This can be done by acquiring assets like land; equipments etc. or by acquisition of financial securities like shares, bond etc.
• One of the key aspects is financial planning. It involves proper planning, raising and investing the fund. It is necessary in order to protect them from odd situations.
• Profit is major driving force in any investment. Whether an individual or a business both must utilise their financial resources to obtain maximum output. In a market full of competition, profit plays a major role for the growth of your business.
• Finance is further classified into :-
1. Personal Finance: It revolves around an individual and it’s personal needs such as education, buying cars and electronics or real estate.
2. Public Finance: It refers to the revenue generated and expenditure made by the government on the public for their welfare.
3. Corporate Finance: It deals with generation of funds and its investment by the business groups or corporate.
• The future growth and development of any organisation depends upon how well the financial resources available to them have been utilised. If utilised judiciously then this could result in expansion of the business with growth in profit as well as market share.
So, it has a wider perspective than what it holds in the previous generations with greater opportunities for the individuals and businesses.