Finance Definition and Types

We often hear about finance. This is a broad term. Many times this question must have come to your mind, what is finance?

The word finance is derived from the French language. The Nepali meaning of finance is finance. In simple language, finance is defined as the management of wealth. But finance is a group of many commercial practices. Finance is a multifaceted word. Finance is essential for any individual, company and government to work. Finance is divided into three parts.

Three Types of Finance

  • Personal Finance
  • Corporate Finance
  • Public Finance

All the three types of finance functions are similar such as investing properly, getting a loan at low interest, arranging funds for liabilities and banking etc. But these are different in some ways. Such as its use for an individual or its use for a company or government.

What is personal finance

Personal finance means personal finance (management), to put it simply, personal money management and control for an individual is called personal finance. Everyone handles their money in their own way, they have their own way. Managing money in this different way is called personal finance.

What is corporate finance

As you know, in personal finance, there is talk of a person’s personal income, expenses, investment planning. But corporate finance which we also call corporation finance, involves income, expenses, investment planning of a company, organization or group. This is the income of a company, salary of employees, other expenses, investment etc.

What is public finance

It is clear from the name of public finance that these are public finance. This type of finance is usually dealt with by the government. The Hindi meaning of public finance is public finance. Public finance means public sector finance. Public sector financial transactions, investments, accounts are kept by the government.

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