TABAT,JAJA MEA V.

BSE-2D

Business Finance is the process of managing the funds and capital needed in a
business enterprise. It entails deciding where and how to obtain financial resources,
how to use and allocate these resources, and how to deal with the risks that emanate
from this exercise. Another perspective on Business Organization refers to how
business structures themselves are set up or managed. It ranges from the
establishment of organizational structure, decision making processes, to individual’s
roles in different departments. Investments come in a variety of forms including stocks,
mutual funds, real estate among others. Each type has its own reward-risk package

In Business Finance, the fundamental aim is to maximize shareholder value while

managing financial risks. It comprises of activities like forecasting, budgeting, investing
and risk management. Knowing financial concepts such as the time value of money, can
support enterprises make informed decisions on investments while increasing their
wealth with time. Business Organization is all about creating an efficient structure that
allows a business to meet its goals. This could mean making functional departments
marketing, finance, human resources or it could be based on product lines or
geographic areas. The correct organizational structure will lead to better
communication, increased productivity and finally adaptation to changing businesses
environments. However Investments entail using your money effectively for them to
grow it further. Consider stocks for example which offer you ownership in a company
and returns when the company does well. Bonds are loans given out by companies and
governments that have regular interest payments. Mutual funds help in diversification
since they pool resources from various investors so as to acquire numerous different
assets.

To be in the business world, one must know how to manage a company’s finances,
types of businesses and types of investments. All these aspects are connected to each
other and could have an effect on each another. If properly organized, an institution can
lead to easier ways of managing its funds and if smartly invested it can increase its
financial status. In this regard, continuous learning and adaptation are essential for
success in this field.