What is finance?
The art and science of managing money
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‘Managing money’
Managing money can be of various types- Collecting money
- Properly utilizing the collected money
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Collecting money
Collecting money- For business - For projects
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Collecting money
Collecting money by
Loan (Bank, relatives etc.)
Equity (Your own money) ClassRoom
Utilizing money
- How to invest- Where to invest
- How much to invest
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Point of finance
ACHIEVING ORGANIZATIONAL GOAL
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Organizational goal
Goal can be - Wealth Maximization- Profit Maximization
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Proper goal
Wealth MaximizationProfit Maximization
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Summary
Finance is acquiring funds and utilizing the funds properly in order to
achieve the organizational goal of maximizing shareholder wealth
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