Finance: Purpose: Finance deals with managing money, investments, and assets to optimize the financial health of an organization. Its main purpose is to make financial decisions that maximize value and achieve the organization's goals. Focus: Finance focuses on forecasting, analyzing, and making decisions related to investments, capital structure, risk management, and financial strategy. Key Activities: Investment Analysis: Evaluating investment opportunities to determine their potential returns and risks. Capital Budgeting: Allocating funds to various projects or investments to achieve the organization's goals. Risk Management: Identifying and mitigating financial risks through strategies like insurance, derivatives, and hedging. Financial Strategy: Developing strategies to raise capital, manage debt, and optimize the organization's financial structure. Users of Information: The primary users of finance-related information are company executives, investors, financial analysts, and other decision-makers within the organization. Regulations and Standards: While finance also adheres to regulations and standards, it operates with a broader perspective that encompasses both accounting principles and economic theories. In essence, accounting provides the foundation for financial information, ensuring accurate recording and reporting of financial transactions. Finance, on the other hand, uses this information to make strategic decisions that contribute to an organization's growth and profitability. Both disciplines are essential for effective financial management and decision-making within businesses and other institutions.
Why is this page out of focus?
Because this is a Premium document. Subscribe to unlock this document and more.
