The control of money is dealt with in a business discipline which is called finance. The careful control of a person’s spread of risk portfolio with the expectations of earning better returns in the form of income is, therefore, part of the discipline. The field of finance, thus, encompasses the scrutiny and management of different risks that might interfere with an individual or organization’s capital. Capital in finance is always weighed with a comparison to the rate of investment returns, the value of assets and the possible risks that they face. Three different types are used to describe the finance discipline as it is a pervasive field.
All issues that may affect a person about his financial status are referred to as personal finance. Under this consideration, the various environmental factors that might affect an individual’s financial position are evaluated to determine how it is they might influence the person’s financial status. The personal income of a person is therefore considered, and the various cash flow processes that occur to the person ongoing of money into and out of a person’s financial status and the capital position of a specific individual is hence considered. After learning of his true position as far as matters of financial capabilities are concerned, a person would, therefore, involves in activities that are aimed to making his financial position constant or undertake measures that will increase his capital muscles. The the entire process involved in the acts of trying to identify the probable future unforeseen certainties and embarking on establishing measures to combat them, working on how to manage the various taxes, coming up with the objectives of investments and the arrangement of retirement plans helps in the accomplishment of the planning.
The discipline that involves the analysis of how it is that organizations acquire their capital and the relevant procedures that are carried out by those who are in management with a bid of ensuring that the shareholder’s wealth is increased is known as corporate finance. The field of corporate finance generally deals with how the organization will be able to minimize the risks and in turn, create more profit for the organization and its owners.
With regards to the field, the allocation of money to the various investment ventures that are considered worthy to pursue despite the numerous alternatives that may be in place. Capital acquisition is also very essential in determining the financial status of an organization.
Public Finance encompasses the financial activities of the various governing bodies of a region such as country, province, municipality and county governments. In this regard, the governing authority evaluates the various investment projects that should be undertaken in the region in order to serve the people. The capital acquisition and payment procedure is therefore looked into by the governing bodies.