The control of money is dealt with in a business discipline which is called finance. It includes how individuals can monitor and maintain their investment activities that are expected to bring many pleasurable results regarding revenue. Analysis of the various risks that may pose some interference with a person’s income is therefore involved in finance. 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.
Personal finance refers to all activities that in one way or the other, affect the financial status of an individual. Having considered this, the financial position of a person is looked into with regards to the environmental factors that can influence his financial position to determine how they will bring about the changes. 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. The need for trying to establish mechanisms through which to improve a person’s finances or make them remain constant stems from the knowledge an individual gathers about his current financial level. To be able to meet this goal; a person must undertake the process of discovering the various financial uncertainties that he faces and comes up with strategies to solve them, identify ways of managing his tax levels, establish what will be the goals of his investment plans as well as arrange the relevant retirement plans.
Corporate finance focuses on how organizations get their finances and the necessary procedures that those in charge of the organization undertake to ensure that shareholders interest of value addition is attained. The overall mandate of corporate finance is to look into how it is the organizations will be able to lower the rate of risks that faces the company and while in the process of doing so, be able to maximize opportunities that will create revenue for the organization and its owners at large.
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. The ability to acquire money is important in establishing the financial powers of a firm.
The financial activities of the various bodies which have been given the mandate to rule in over a specific region such as country, county, municipality and province is referred to as public finance. The investment projects undertaken by the governing bodies are supposed to address the needs of the people. The capital acquisition and payment procedure is therefore looked into by the governing bodies.