Financial

Management
What is Finance?
Science of managing money.

At Personal Level:
- How much of their earning they spent
- How much they save
- How much they invest

In Business Context:
- How firms raise money from investors
- How firms invest money to earn profit
- How firm decide to reinvest or distribute profits
Forms of Business Organization:
1. Sole Proprietership:
Business owned by one person and being operated for his/her own profit
maximization.
Decision making: in hand of one person only.
Liability: unlimited

2. Partnership
Business owned by two or more persons and run for profit maximization.
Article of Partnership is used as a contract to legally establish the business partnership.
Decision making: by all partners depending upon their rights
Liability: unlimited

2.1. Limited Partnership:

Liability: In which one or more partner has limited liability as long as one partner has
unlimited liability.