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http://en.wikipedia.org/wiki/Financing
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Finance
Financial markets
Bond market
Stock (Equities) Market
Foreign exchange market
Derivatives market
Commodity market
Money market
Spot (cash) Market
OTC market
Real Estate market
Private equity
Market participants
Investors
Speculators
Institutional Investors
Corporate finance
Structured finance
Capital budgeting
Financial risk management
Mergers and Acquisitions
Accounting
Financial Statements
Auditing
Credit rating agency
Leveraged buyout
Venture capital
Personal finance
Credit and Debt
Employment contract
Retirement
Financial planning
Public finance
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http://en.wikipedia.org/wiki/Financing
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http://en.wikipedia.org/wiki/Financing
general, the goals of each of the above activities are achieved through the use of appropriate financial
instruments and methodologies, with consideration to their institutional setting.
Finance is one of the most important aspects of business management. Without proper financial planning a
new enterprise is unlikely to be successful. Managing money (a liquid asset) is essential to ensure a secure
future, both for the individual and an organization.
Capital
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http://en.wikipedia.org/wiki/Financing
Suppliers credit:
Credit on ordinary open account
Installment sales
Bills of exchange
Credit cards
Contractor's credit
Factoring of debtors
Cash credit
Cpf credits
Exchange of product
Factors which influence credit conditions
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Increases sales
Reduces bad debts
Increases profits
Builds customer loyalty
Builds confidence of financial industry
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http://en.wikipedia.org/wiki/Financing
Business references
Bank references
Credit agencies
Chambers of commerce
Employers
Credit application forms
Duties of the credit department
Legal action
Taking necessary steps to ensure settlement of account
Knowing the credit policy and procedures for credit control
Setting credit limits
Ensuring that statements of account are sent out
Ensuring that thorough checks are carried out on credit customers
Keeping records of all amounts owing
Ensuring that debts are settled promptly
Timely reporting to the upper level of management for better management.
Stock
Purpose of stock control
Ensures that enough stock is on hand to satisfy demand.
Protects and monitors theft.
Safeguards against having to stockpile.
Allows for control over selling and cost price.
Stockpiling
Main article: Cornering the market
This refers to the purchase of stock at the right time, at the right price and in the right quantities.
There are several advantages to the stockpiling, the following are some of the examples:
Losses due to price fluctuations and stock loss kept to a minimum
Ensures that goods reach customers timeously; better service
Saves space and storage cost
Investment of working capital kept to minimum
No loss in production due to delays
There are several disadvantages to the stockpiling, the following are some of the examples:
Obsolescence
Danger of fire and theft
Initial working capital investment is very large
Losses due to price fluctuation
Rate of stock turnover
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This refers to the number of times per year that the average level of stock is sold. It may be worked out by
dividing the cost price of goods sold by the cost price of the average stock level.
Determining optimum stock levels
Maximum stock level refers to the maximum stock level that may be maintained to ensure cost
effectiveness.
Minimum stock level refers to the point below which the stock level may not go.
Standard order refers to the amount of stock generally ordered.
Order level refers to the stock level which calls for an order to be made.
Cash
Reasons for keeping cash
Cash is usually referred to as the "king" in finance, as it is the most liquid asset.
The transaction motive refers to the money kept available to pay expenses.
The precautionary motive refers to the money kept aside for unforeseen expenses.
The speculative motive refers to the money kept aside to take advantage of suddenly arising
opportunities.
Advantages of sufficient cash
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http://en.wikipedia.org/wiki/Financing
Insurable interest
The insured must derive a real financial gain from that which he is insuring, or stand to lose if it
is destroyed or lost.
The item must belong to the insured.
One person may take out insurance on the life of another if the second party owes the first
money.
Must be some person or item which can, legally, be insured.
The insured must have a legal claim to that which he is insuring.
Good faith
Uberrimae fidei refers to absolute honesty and must characterise the dealings of both the
insurer and the insured.
There is currently a move towards converging and consolidating Finance provisions into shared services
within an organization. Rather than an organization having a number of separate Finance departments
performing the same tasks from different locations a more centralized version can be created.
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http://en.wikipedia.org/wiki/Financing
A strand of behavioral finance has been dubbed Quantitative Behavioral Finance, which uses mathematical
and statistical methodology to understand behavioral biases in conjunction with valuation. Some of this
endeavor has been lead by Gunduz Caginalp (Professor of Mathematics and Editor of Journal of Behavioral
Finance during 2001-2004) and collaborators including Vernon Smith (2002 Nobel Laureate in Economics),
David Porter, Don Balenovich, Vladimira Ilieva, Ahmet Duran). Studies by Jeff Madura, Ray Sturm and
others have demonstrated significant behavioral effects in stocks and exchange traded funds. Among other
topics, quantitative behavioral finance studies behavioral effects together with the non-classical assumption
of the finiteness of assets.
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Intangible asset finance is the area of finance that deals with intangible assets such as patents, trademarks,
goodwill, reputation, etc.
There are several related professional qualifications in finance, that can lead to the field:
Accountancy:
Qualified accountant: Chartered Accountant (ACA - UK certification / CA - certification in
Commonwealth countries), Chartered Certified Accountant (ACCA, UK certification), Certified
Public Accountant (CPA, US certification)
Non-statutory qualifications: Chartered Cost Accountant CCA Designation from AAFM
Business qualifications: Master of Business Administration (MBA), Bachelor of Business
Management (BBM), Master of Commerce (M.Comm), Master of Science in Management (MSM),
Doctor of Business Administration (DBA)
Generalist Finance qualifications:
Degrees: Masters degree in Finance (MSF), Master of Financial Economics, Master Financial
Manager (MFM), Master of Financial Administration (MFA)
Certifications: Chartered Financial Analyst (CFA), Certified International Investment Analyst
(CIIA), Association of Corporate Treasurers (ACT), Certified Market Analyst (CMA/FAD)
Dual Designation, Corporate Finance Qualification (CF)
Quantitative Finance qualifications: Master of Science in Financial Engineering (MSFE), Master of
Quantitative Finance (MQF), Master of Computational Finance (MCF), Master of Financial
Mathematics (MFM)
1. ^ Gove, P. et al. 1961. Finance. Webster's Third New International Dictionary of the English Language
Unabridged. Springfield, Massachusetts: G. & C. Merriam Company.
2. ^ finance. (2009). In Encyclopdia Britannica. Retrieved June 23, 2009, from Encyclopdia Britannica Online:
http://www.britannica.com/EBchecked/topic/207147/finance
3. ^ Microsoft. 2009. Finance. uk.encarta.msn.com, http://www.webcitation.org/5hlUjB4mc
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