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You are required to identify what are the five generally recognized areas of finance and explain...

You are required to identify what are the five generally recognized areas of finance and explain each area of finance in your own words.

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Expert Solution

There are five basic areas of finance & they are as follows-

1. Corporate finance-this type of finance is related to strategic decisions regarding various entities.these are mostly related with the financial statements of an entity which includes balance sheet, income statement, cash flows, and other statements which are financial in nature. This type of finance help the company to do mergers and acquisitions.

2. Investment-this type of finance is related with the investment related decision which are majorly associated with how to invest and what are the major financial consideration which need to be factored into for investment into a particular security or a particular asset .

3. Financial institutions-this type of finance is related to management of different activities which are related to Financial institutions and banks and these are the institutions which are related for acting as intermediaries between different aspects of an economy.

4. International finance-this type of finance is related with investment into to foreign securities and management and analysis of different aspect of foreign investment.

5. Personal finance-This type of finance is related with investment into personal asset and personal portfolio and various kind of goal oriented portfolio formation which are for personal need of different people.

jeff jeffy answered 1 year ago
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