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Finance with the involvement of technology.pdf
- 1. FINANCE Introduction to INDT 27AMaterials and Business Technology Management
- 2. Finance derives fromthe Latin word 'finis' and Old French word 'fin' for fine, which originally meant 'end'. The French word for finance came to mean both 'payment' and 'ending', but in the 18th century the English adapted it to mean the ‘management of money'. Finance
- 3. What is Finance isa term that addresses matters regarding the management, creation, and study of money and investments. It involves the use of credit and debt, securities, and investment to finance current projects using future income flows. Finance?
- 4. Key Terms Asset -something of value, such as cash or property. Cash flow - the movement of money in and out of a household or business. Principal amount - the original amount of money that is borrowed, invested, or lent. Liability - a financial obligation, such as debt. Liquidity - how easily an asset can be converted to cash. Profit - the money left over after expenses.
- 5. Key Terms Capital -the money used to build, run, or grow a business. Debt – borrowed money you owe to a person, business, or institution. Equity – Equity involves ownership. It is often your total assets minus total liabilities. Interest – the price you pay to borrow money, or the return earned on an investment. There are two types of interest: 1) Simple Interest 2) Compound Interest
- 6. The Financial System Lenders– anyone, from corporations to individuals. Borrowers – people who borrow money (called loans) from lenders with the intention of paying it back, with interest. is a network of institutions, markets, and contracts that bring lenders and borrowers together.
- 7. 1 Finance can bebroadly divided into four categories Public Finance 2 3 Corporate Finance Personal Finance 4 Social Finance
- 8. Public finance includestax systems, government expenditures, budget procedures, stabilization policies and instruments, debt issues, and other government concerns. Public Finance
- 9. • User chargesfrom ports, airport services, and other facilities. • Fines resulting from breaking laws. • Revenues from licenses and fees, such as for driving. • Sales of government securities and bond issues. Examples of Public Finance
- 10. Corporate Finance Corporate financeinvolves managing assets, liabilities, revenues, and debts for businesses.
- 11. • Equity investmentsto credit arrangements. • Loan from a bank or arrange for a line of credit. • Acquiring and managing debt. • Selling additional shares or issue corporate bonds. Examples of Corporate Finance
- 12. Personal Finance Personal financedefines all financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings, and retirement planning.
- 13. • Assessing thecurrent financial status such as expected cash flow and current savings. • Buying insurance to protect against risk and to ensure that one’s material standing is secure. • Calculating and filing taxes. • Savings and investments. Examples of Personal Finance
- 14. Social Finance Social finance typicallyrefers to investments made in social enterprises including charitable organizations and some cooperatives. These investments take the form of equity or debt financing in which the investor seeks both a financial reward and a social gain.
- 15. • Charity bonds •Community shares • Crowd-funded investment • Social property funds Examples of Social Finance