Business Finance PPT 1
Business Finance PPT 1
Business Finance PPT 1
INTRODUCTION TO FINANCIAL
MANAGEMENT
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Definition of Finance
1. Acquisition of funds with the least cost from the right sources at the right
time;
2. Effective cash management;
3. Effective working capital management;
4. Effective inventory management;
5. Effective investment decisions;
6. Proper asset selections; and
7. Proper risk management
Financial Institutions
2. Credit Unions
A member-owned, non-for-profit financial cooperative. Unlike other
financial istitutions, credit unions are established and operated by the
members. In a credit union, profits are being shared among the members.
Types of Financial Institutions
3. Stock Brokerage Firms
This type of institution is responsible for the purchasing and selling of
financial securities between a buyer and a seller. Additionally, such firms
serve a clientele of investors and employ a number of stockbrokers whom
they trade public stocks and other securities with.
6. Finance Companies
As a finacial institution, this type type of firm provides its clients the
funds they need for both business and personal sonsumption. Comparable to
bank, finance companies act as lending entities by extending credit, however
they do not have provision of accepting deposits from their client.
Types of Financial Institutions
7. Buiding Societies
An institution that is able to offer banking and other fianancial services to
its members. Members in fact own these firms and as such, it is also called a
mutual organization. They provide service like mortgages and demand-
deposit accounts.
8. Retailers Institution
To earn profit through direct selling of goods through various channels of
distribution is what retailer institution conducts as its means of business.
Offer the provision of consumer credit at a retailer’s point of sale.