BUS3062 Unit 1 Assignment 1.docx BUS_3062 Unit 1 Assignment 1 Question 1: Proficient-level: Define the terms finance and financial management. Identify and provide a brief description of the four major sub-areas of f
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BUS3062 Unit 1 Assignment 1.docx BUS_3062 Unit 1 Assignment 1 Question 1: Proficient-level: Define the terms finance and financial management. Identify and provide a brief description of the four major sub-areas of finance. Distinguished-level: Describe the nature of risk. Finance is the cash flow of the process of incoming and outgoing money, finance management is the core of the business to make it successful they make all the decisions within the company. Major Sub-Areas 1. Investments “ this sub-area contains the techniques and methods on making decisions as to what kind of securities to own such as stocks and bonds. The risks they have is the investments that are made are not successful or projects may fail which may lead to loss of profits as cash flows are not guaranteed and these would be unreliable in terms of size and timing. Investors would risk their capital return. 2. Financial management “ they deal with the companies™ decisions on how the cash will be used and that is being received from retained earnings or investors. They also have the vital area of risk which involves making decisions on which projects to fund, how to raise capital and how to minimize taxations. 3. Financial institutions and markets “ These two entities work in diverse ways, they enable capital flows between companies and investors. Financial institutes are vital as they contribute to the dynamics of the interest rates. 4. International finance “ This is the global economy, as this has changed to be more. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . .
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