What are the 3 primary areas of finance?

Finance consists of three interrelated areas: (1) money and credit markets, which deals with the securities markets and financial institutions; (2) investments, which focuses on the decisions made by both individuals and institutional investors; and (3) financial management, which involves decisions made within the ...


What are the main areas of finance?

Finance is the management of money which includes investing, borrowing, lending, budgeting, saving, and forecasting. There are four main areas of finance: banks, institutions, public accounting, and corporate.

What is the 3 financial management?

The three types of financial management are: Capital budgeting. Capital structure. Working capital management.


What are the 3 types of financial analysis?

Horizontal, vertical, and ratio analysis are three techniques that analysts use when analyzing financial statements.

What are the five main areas of finance?

When conducting your financial analysis, we take a look at the five main areas of financial planning:
  • Protection. ...
  • Estate Planning Strategies. ...
  • Retirement Planning. ...
  • Investment Planning. ...
  • Tax Planning.


1. Basic Areas of Finance



What are the 5 pillars of finance?

At a glance. Discussed are the 5 pillars of financial literacy: earn, save and invest, protect, spend and borrow.

What are the 4 areas of personal finance?

What Are The 5 Areas of Personal Finance? The areas of personal finances include income, spending, savings, investing, and protection.

What are the 3 personal finance strategies?

It's also about understanding that the principles that contribute to success in business and your career work just as well in personal money management. Three key skills are finance prioritization, assessing the costs and benefits, and restraining your spending.


What are the 7 areas of financial planning?

7 Areas Typically Covered in a Financial Plan
  • Financial statement preparation and analysis.
  • Insurance planning and risk management.
  • Employee benefits planning.
  • Investment planning.
  • Income tax planning.
  • Retirement planning.
  • Estate planning.


What are the six pillars of finance?

The 6 Pillars of Financial Planning
  • Manage Cash Flow.
  • Debt Reduction.
  • Income Protection.
  • Savings/Wealth Accumulation.
  • Retirement/Estate Planning.
  • Minimizing the Impact of Inflation & Taxes.


What are the 4 pillars of financial planning?

Four Pillars of Financial Planning
  • Managing Cash Flow and Financial Resources. This critical first pillar focuses on making sure you and your loved ones are provided for. ...
  • Accumulating Wealth. ...
  • Managing Income Taxes. ...
  • Planning for Retirement.


What are the 4 steps in financial planning?

Use this step-by-step financial planning guide to become more engaged with your finances now and into the future.
  1. Assess your financial situation and typical expenses. ...
  2. Set your financial goals. ...
  3. Create a plan that reflects the present and future. ...
  4. Fund your goals through saving and investing.


What are the 4 functions of finance?

Finance Functions - Investment Decision, Financial Decision, Dividend Decision and Liquidity Decision.

What are the three 3 objectives of financial planning?

Determining your future needs in terms of investment, resources, funds. Determining the sources of funds. Managing or utilizing these funds efficiently. Identifying risks and issues in the plan.


What are the 7 areas of financial planning?

7 Areas Typically Covered in a Financial Plan
  • Financial statement preparation and analysis.
  • Insurance planning and risk management.
  • Employee benefits planning.
  • Investment planning.
  • Income tax planning.
  • Retirement planning.
  • Estate planning.


What are the 7 types of financial services?

These financial services are explained below:
  • Banking.
  • Professional Advisory.
  • Wealth Management.
  • Mutual Funds.
  • Insurance.
  • Stock Market.
  • Treasury/Debt Instruments.
  • Tax/Audit Consulting.


What are the 7 finance function?

The seven popular functions are decisions and control, financial planning, resource allocation, cash flow management, surplus disposal, acquisitions, mergers, and capital budgeting.


What are the 9 sources of finance?

The sources of business finance are retained earnings, equity, term loans, debt, letter of credit, debentures, euro issue, working capital loans, and venture funding, etc.

What are the six sources of finance?

What are the six sources of finance?
  • Debt.
  • Equity.
  • Term loans.
  • Working capital loans.
  • Retained earnings.
  • Letter of credit.


What are the four types of financial?

But if you're looking for investors for your business, or want to apply for credit, you'll find that four types of financial statements—the balance sheet, the income statement, the cash flow statement, and the statement of owner's equity—can be crucial in helping you meet your financing goals.


What are the 4 pillars of financial planning?

Four Pillars of Financial Planning
  • Managing Cash Flow and Financial Resources. This critical first pillar focuses on making sure you and your loved ones are provided for. ...
  • Accumulating Wealth. ...
  • Managing Income Taxes. ...
  • Planning for Retirement.


What are the 4 steps in financial planning?

Use this step-by-step financial planning guide to become more engaged with your finances now and into the future.
  1. Assess your financial situation and typical expenses. ...
  2. Set your financial goals. ...
  3. Create a plan that reflects the present and future. ...
  4. Fund your goals through saving and investing.


What are the 4 functions of finance?

Finance Functions - Investment Decision, Financial Decision, Dividend Decision and Liquidity Decision.


What are the 6 functions of finance?

The Functions of a Financial System
  • Function #1: Facilitating Payments. ...
  • Function #2: Transfer of Resources. ...
  • Function #3: Risk Management. ...
  • Function #4: Managing Information. ...
  • Function #5: Efficient Middleman. ...
  • Function #6: Pooling of Resources.


What is the aim of finance?

Acquiring Sufficient and Suitable Funds: The primary aim of finance function is to assess the needs of the enterprise, properly, and procure funds, in time. Time is also an important element in meeting the needs of the organisation.