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Finance is a field that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. Finance also applies and uses the ...
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Finance refers to the management of money or the use of money to fund projects or buy assets. Businesses manage their finances and finance operations and equipment. Business finance is the way you allocate your resources to run your company. It looks at revenue, expenses, assets, and liabilities to determine the optimal mix of debt and equity. Typically, a small business will hire a business manager, accountant, or bookkeeper to manage the company's finances. A larger company might hire a director of finance, a chief financial officer, or an accounting firm.
Financing projects or assets is a different process under the category of general finance. It is the way your company goes about allocating equity to raise money, issuing debt, or securing loans to fund operations or purchases. If your business is organized as a corporation, you would be familiar with financing at the startup stage. Corporations issue stock to capitalize the company through equity financing and issue bonds to capitalize it through debt financing. If your business takes out a loan to purchase equipment, the interest rate on the loan and the repayment terms comprise the financing on the equipment.
Finance is also an industry. Firms that provide financial services or manage money fall under this category. Read more about finance from the links on this Business.com page.
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