1. FINANCE I- DEFINITIONS II- FEATURES

2. I- DEFINITIONS

3. ACCORDING TO SOME EXPERTS

4. Finance is the management of money and valuables easily converted into cash.

5. Finance provides funds for businesses like companies, firms

6. and individuals to achieve economic objectives.

7. Finance helps businesses and individuals to use their Funds efficiently.

8. It also deals with profits and causes of possible losses.

9. II Features of Finance

10. 1. Investment Opportunities

11. Investment is the use of monetary resources with the objective of economic returns.

12. Investment is done through

13. Creation of assets (eg: acquisition of commercial assets) Business activities (eg:manufacturing & trading)

14. 2. Profitable Opportunities

15. Profitable opportunities means that the firm uses resources efficiently in a competitive market.

16. 3. Optimal Mix of Funds

17. Finance is concerned with the optimal mix of funds in order to obtain the predetermined results.

18. There are two types of funds 1-Owned funds (eg Promoter Contribution), and 2-Borrowed funds (eg Bank Loan, Bank overdraft, etc).

19. 4. System of Internal Controls

20. Finance is concerned with the internal control of the organisation’s rules and regulations.

21. 5. Future Decision-Making.

22. Finance indicates the company’s future growth and returns. This is possible with a good analytical decision of the organisation.

23. However, the decision shall be framed by emphasing on the present and future perspective economic conditions.

24. Conclusion

25. Finance is concerned with the management of:

26. Owned funds Borrowed funds

27. Finance also Deals with the efficient management of the business generated assets and other valuables.

28. KEY TERMS  FINANCE: The science of the management of money and other assets  MANAGMENT: The planning, organizing, directing, and controlling of the enterprise’s operations so that objectives can be achieved economically and efficiently.  VALUABLE: Having considerable monetary value for use or exchange.

29.  CASH Money in the form of bills or coins; currency.  PROFIT Income received from investments or property. The opposite is LOSS  INVESTMENT Purchasing an asset,lending one’s money, or contributing to a venture in hopes of receiving a return of the funds invested. RETURN The profit made on an exchange of goods.

30.  ASSET A valuable item that is owned  To MANUFACTURE To process (a raw material) into a finished product, especially by means of a large- scale industrial operation