Post by davidpeter on Jun 4, 2009 5:10:47 GMT
Public Finance and Private Finance are two branches of finance.
Finance can be divided into two broad categories :-
1.Private Finance
2.Public Finance
Private Finance can be categorized into :-
i.Personal Finance :-
It basically deals with the optimization of finances in the individual (single consumer, family, personal savings, etc.) level subjected to the budget constraint. For example, a consumer can finance his/her purchase of a car by taking a loan from any bank or financial institutions.
In short, it can be said that Personal Finance is financial planning on the individual level. It deals with the utilization of the monetary resources by individuals and families by means of budgeting, saving and spending after taking into consideration the probable life events of the future and risks associated with them. Personal Finance generally includes :-
(a)Savings account
(b)Insurance policies
(c)Consumer Loans
(d)Stock market investments
(e)Retirement plans
(f)Managing of income taxes
(g)Credit cards
ii.Business Finance :-
It tries to optimize the goals (profit, sales, etc.) of a corporation or other business organization by estimating future asset requirements and then allocating funds in accordance to the availability of funds.
Business Finance deals with the monetary provisioning at the commercial level. A business constantly requires capital based on different perspectives :- Short-term
Medium-term
Long-term
san diego business investors
Finance can be divided into two broad categories :-
1.Private Finance
2.Public Finance
Private Finance can be categorized into :-
i.Personal Finance :-
It basically deals with the optimization of finances in the individual (single consumer, family, personal savings, etc.) level subjected to the budget constraint. For example, a consumer can finance his/her purchase of a car by taking a loan from any bank or financial institutions.
In short, it can be said that Personal Finance is financial planning on the individual level. It deals with the utilization of the monetary resources by individuals and families by means of budgeting, saving and spending after taking into consideration the probable life events of the future and risks associated with them. Personal Finance generally includes :-
(a)Savings account
(b)Insurance policies
(c)Consumer Loans
(d)Stock market investments
(e)Retirement plans
(f)Managing of income taxes
(g)Credit cards
ii.Business Finance :-
It tries to optimize the goals (profit, sales, etc.) of a corporation or other business organization by estimating future asset requirements and then allocating funds in accordance to the availability of funds.
Business Finance deals with the monetary provisioning at the commercial level. A business constantly requires capital based on different perspectives :- Short-term
Medium-term
Long-term
san diego business investors