The Field of Finance
Finance refers to the processes involved in channeling funds to different economic entities. These entities include banks, investment companies, and other financial institutions. These entities lend money to borrowers and earn interest. Moreover, they also serve as a source of confidence for consumers. Failure to maintain a healthy finance sector can lead to economic instability and recession. The traditional finance function was concerned with raising funds, but the modern function has widened its scope. Increasing industrialization and technological advances have increased the need for funds, and competition among business enterprises has improved the efficiency of the financial functions. Moreover, increasing efficiency in the use of funds is an essential aspect of finance. This function helps in increasing the profitability of a business. The field of finance is an essential component of any business. It enables a company to reach its goals and objectives by managing funds within its organization. It…