Dear Readers,
As per Notification of Officer (Credit) JMGS- I and Manager MMGS- II released by Bank of India (BOI). There will be three subjects and one of the subjects is Financial Management. Financial Management is not one of the easier subjects so it requires your great effort. So, friends do not worry about that, Bankersadda is always with you for your best preparation for competitive examinations. Here are some topics/content of Financial Management. It is also helpful for Assistant Manager (Financial Analyst) in Oriental Bank of Commerce (OBC) Specialist Officers (SO).
What is Finance
Business concern needs finance to meet their requirements in the economic world. Any kind of business activity depends on the finance. Hence, it is called as the lifeblood of the business organization. Whether the business concerns are big or small, they need finance to fulfill their business activities.
Meaning of Finance
Finance may be defined as the art and science of managing money. It includes financial service and financial instruments. Finance is also referred as the provision of money at the time when it is needed. The finance function is the procurement of funds and their effective utilization in business concerns. The concept of finance includes capital, funds, money, and amount. But each word has its unique meaning. Studying and understanding the concept of finance become an important part of the business concern.
Business Finance or Corporate finance
Corporate finance or Business finance is concerned with budgeting, financial forecasting, cash management, credit administration, investment analysis and fund procurement of the business concern and the business concern needs to adopt modern technology and application suitable to the global environment.
Types of Finance
Finance is one of the important and integral parts of business concerns, hence, it plays a major role in every part of the business activities. It is used in all the area of the activities under the different names. Finance can be classified into two major parts:
1. Private Finance: – A private finance is a method of providing funds for major capital investments where private firms are contracted to complete and manage public projects. Under a private finance initiative, the private company, instead of the government, handles the up-front costs.
Private Finance is divided into three parts:-
(a) Individual Finance
(b) Partnership Finance
(c) Business Finance
2. Public Finance- public finance is the finances of the Government. Thus, public finance deals with the question how the Government raises its resources to meet its ever-rising expenditure. In other definition “public finance is concerned with the income and expenditure of public authorities and with the adjustment of one to the other.”
Public Finance is also divided into three parts:-
(a) Central Government
(b) State Government
(c) Semi Government
All the best for Exams!!!!
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