Reference no: EM131532994

Topic:

What is finance? Give 2 examples of how financial managers use it in corporations. Give an example of how we use it in our personal lives. Be sure to include your source cited in APA format.

FROM YOUR INSTRUCTOR:

The world of finance is very broad and very dynamic. Every individual and organization earns money and tries to spend and invest it wisely. Finance involves, amongst other things, all aspects of the transfer of funds amongst and between businesses, governments and individuals. Understanding finance will help adults make better decisions in their personal lives about their money and all other aspects of personal finance including budgeting, saving and investing so as to meet their personal financial goals. Understanding finance will help a corporation make decisions that will help maximize shareholder wealth which is the over-arching goal of all senior managers in a corporation.

There are basically two major areas of finance - managerial finance and financial services. A review of both areas will help us better understand finance. The field of financial services is involved with the creation and delivery of financial advice and products to businesses as well as individuals. Career opportunities include investments, real estate, personal financial planning, insurance and banking. Managerial finance involves the responsibilities and duties of a financial manager in a corporation. Financial managers' responsibilities include planning, evaluating various projects and other large capital expenditures, raising funds to fund a corporation's operations and financing needs, and creating and developing strategies to help a corporation maintain and improve its competitive advantage.