Finance is basically a field of knowledge about things regarding the science, development, measurement, and control of financial assets and liabilities. All fields that deal with finance have many different subsets, such as micro and macro economics, accountancy, and personal […]
Finance is basically a field of knowledge about things regarding the science, development, measurement, and control of financial assets and liabilities. All fields that deal with finance have many different subsets, such as micro and macro economics, accountancy, and personal and business finances. All subsets of finance are affected by other sub-disciplines, such as management, investment, economics, and law.
One of the most important parts of the finance field is interest. Interest is what allows businesses to accumulate resources that can be used for capital expenditures, loans, and other monetary needs. For example, if a business owes money to a bank, that loan will be converted into cash and invested for future use. If the owner wants to start a new business, then he would need more capital to fund his start-up. The capital thus obtained can be used for advertising and other promotional activities, or simply used for purchasing equipment or tools that will make the business operate properly.
Businesses large and small typically fall into one of two categories: those that generate their own income and those that rely on financing from banks, government agencies, or other financial institutions. In the first case, the business receives money from investors (usually banks) in return for using its own capital to generate income. The money generated from the investment is used either for expanding the business or for the payment of debts. With debt finance, the bank collects payments from the debtors on behalf of the business; this form of finance usually requires a loan, backed by collateral, from the lender.
As mentioned earlier, there are three main parts of the finance field: money management, financial goods and services, and banking. Money management refers to the process of producing and managing money. Financial goods and services are those that are traded in an open market. Banks are the primary financial services sector. The other two parts are more oriented to particular sectors within these larger fields.
A Bachelor’s degree in finance is usually required to start a business. You must also have a qualified degree in business to work as a banker or other financial professional. Those wishing to enter the financial services field should pursue a Master’s degree or a Doctoral degree. The top-level MBA programs at colleges and universities across the United States often lead students to a lucrative job in finance. For those not affiliated with a traditional college or university, the choices for earning finance degrees vary widely.
The top finance jobs in the United States generally require at least a bachelor’s degree and experience. In most major cities, law and accounting graduates will find employment easily. A doctorate degree is usually necessary to become a financial adviser or insurance policy analyst. Finance graduates who obtain senior positions at banks and other financial institutions are often eligible for higher salaries and career advancement than those who have entered the workforce without a bachelor’s degree. Graduates with a doctorate degree may also be eligible for senior level positions in government, health care or other areas of the government.