What Is Finance?
Finance is a term for matters regarding the management, creation, and study of money and investments. Finance can be broadly divided into three categories, public finance, corporate finance, and personal finance. There are many other specific categories, such as behavioral finance, which seeks to identify the cognitive (e.g., emotional, social, and psychological) reasons behind financial decisions.
The Basics of Finance
Finance, as a distinct branch of theory and practice from economics, arose in the 1940s and 1950s with the works of Markowitz, Tobin, Sharpe, Treynor, Black, and Scholes, to name just a few. Of course, topics of finance—such as money, banking, lending, and investing—had been around since the dawn of human history in some form or another.
Today, “finance” is typically broken down into three broad categories: Public finance includes tax systems, government expenditures, budget procedures, stabilization policy and instruments, debt issues, and other government concerns. Corporate
axle grease Australian slang for money, which greases the wheels of life, so to speak, helping things to run along more smoothly.
chicken feed Small change; a paltry or inconsequential amount of money. This American slang expression, which dates from 1836, is an allusion to the scraps and seeds fed to chickens.
fast buck Money acquired quickly and effortlessly, usually through illegal or unscrupulous methods. In this expression, buck carries the American slang meaning of dollar, making the origin of the term self-evident.
Trying to hustle me a fast buck. (A. Kober, New Yorker, January, 1949)
filthy lucre Money; money or other material goods acquired through unethical or dishonorable means, dirty money. This expression was first used in an epistle by St. Paul:
For there are many unruly and vain talkers and deceivers … who subvert whole houses, teaching things which they ought not, for filthy lucre’s sake. (Titus
What Is Insurance?
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.
How Insurance Works
There is a multitude of different types of insurance policies available, and virtually any individual or business can find an insurance company willing to insure them—for a price. The most common types of personal insurance policies are auto, health, homeowners, and life. Most individuals in the United States have at least one of these types of insurance, and car insurance is required by law.
What Is a Business?
A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause.
The term business also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit. Businesses range in scale from a sole proprietorship to an international corporation. Several lines of theory are engaged with understanding business administration including organizational behavior, organization theory, and strategic management.
People have conducted business since ancient times; historically, businesses have involved mercantile operations, trade guilds, or shared agricultural production.
The Basics of a Business
Generally, a business begins with a business concept (the idea) and a name. Depending on the nature of the business, extensive market research may be necessary to determine whether turning the idea into
The Bell group, instead of being driven from the field, were at once lifted to a higher level in the business world.
Most of them were well- known business men–the Bradleys, the Saltonstalls, Fay, Silsbee, and Carlton.
There was a spirit of confidence and enterprise; and the next step, clearly, was to create a business organization.
Vail, took his seat as General Manager in a tiny office in Reade Street, New York, and the building of the business began.
Bell invented the telephone; Watson constructed it; Sanders financed it; Hubbard introduced it; and Vail put it on a business basis.
The new General Manager had, of course, no experience in the telephone business. Neither had any one else.
So, just as Amos Kendall had left the post office service thirty years before to establish the telegraph business, Theodore N.
“We have the only original telephone patents,” he wrote;