Question

Why is Finance understanding important for business degrees and for life in general?

Answer 1

For business degree:

A person acquiring a business degree, is projected as a person who can manage the entire operations of a firm, of which he is put in charge. Entire operations includes finance also.

Further, since all operations finally impinge on finance, the manager requires a good knowledge of finance to take good decisions.

Hence, business degrees are structured with papers and topics on finance, so that, a person holding a business degree has a good understanding of the subject.

For life in general:

In ones life a person has to have a good understanding of the basic aspects of finance. It will enable him to predict his requirements of finance during his expected life time, including important needs like acquiring a house, planning for childrens' education, planning for retirement and so on.

All the requirments are to be adjusted for expected inflation and the possible rate of returns on investments and the risks associated with those investments are to be considered for a proper personal financial planning.

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