1. Be able to analyze the financial data
Finance:
It is the study of the management of the funds. Key domains of financing are: * Business finance. * Private finance (personal loan). * The public finance.
Finance deals with the savings of money and frequently deals with the lending matters. The field of the finance offers with the time concepts, money, the risk and how they are secured. It takes care of how money used in budgeting. The one of the main source of the financing is through individuals and organizations that deposit or invest money. The banks issue money to other natural or lawful people for the expenditure and charge interest.
Why the businesses need the financing
Commencement of a new business
A business needs a financing to buy the equipment, machinery and to spend on personnel. Money will be so necessary to cover the routine functioning expenses.
Finance for the expansions of production capacity
As growing a business, it has to be able to produce a newer technology and the machinery and to reduce costs and to live a day competitors.
To develop product and to market the products
A business has to spend money for the development and marketing of products.
To enter in newly market
Whenever ventures grow, they sell its products on new business markets. It can be new geographic areas to sell or types of customers. That costs money in a way of investigation and of marketing, for example advertising campaigns and the creation of points of sale.
Takes of a possession or of an acquisition
When a business acquire another business, money will be necessary to pay for the acquisition or possession (acquisitions will be suppose a significant inversion). (infocheese, 2008)
Reliability and validity of financial data:
The concept of reliability is used in a variety of matters and of industrial environments. Usually, the