2.5 Points)


2) Financing
: Financing is the decision of how to pay for both short-term and long-term assets. That helps a determination how much for each term debt and equity the best would be. Long-term debt and Stockholders’ equity are regarded as the parts of Financing.

The only catch is that you must be strong and not touch this money until it is truly needed. You shouldn 't use it to buy extra during the month beyond your budget as that will defeat its purpose and run the money down. It 's also a good idea to put into a money market account or something that yields a little more interest. If you 're not planning on touching it anyway, this will get the most use out of saving this money.

I must determine if my monthly savings is appropriate and increase saving if it is not. Choosing the correct account can impact my financial situation immensely. Will a regular account or money market account improve my financial goals? Opening a bank account is very easy, but allowing the balance to grow can sometimes be a challenge so this also is an important decision to make.

Find out how much you might be able to spend each month and get an estimation for the length of time your savings should last.

part of the assets that you, or a company, own. That, minus the liabilities, represents your net worth. The same is true of a

Every individual and their loved ones should take advantage of a savings account which will act as an emergency fund in the case that funds are needed in the event of an emergency, job loss, or even an illness inside the loved ones.

You don’t have a budget written down. A budget is imperative to your financial health. Think of a budget as your financial

A type of loan in which the borrower uses the equity of his or her property

Equity financing, aka investment, differs from debt financing in that rather than require repayment of the money, on a monthly basis, the money provided for financing is exchanged for a percentage of the business (Mikic et al., 2016). The premise is that with time and business expansion, the value of the business will sufficiently increase to repay the initial investment and provide profits to the investor (Shah & Thakor, 1988). The fiscal exchange typically occurs through a liquidity sale or initial public offering (IPO) (Mikic et al., 2016). This form of lending steps outside the traditional format and increases options for the entrepreneur.

7. Stocks: A stock is essentially a share of ownership in a company. Owners of stocks receive part of the company's profits-or bear some of its losses-up to the amount of money they put into the stock.

Equity refers to the net worth of an entity in relation to assets. This is to say that equity is the total number of assets left after liabilities have been removed. This then implies that equity is the result of total assets left after subtracting liabilities. It is also important noting there is a possibility of getting negative equity if the liabilities exceed assets. However, in such a scenario the entity may need to take some measures since this is not desirable businesswise. Assets include all resources either tangible or intangible that have an economic advantage to an entity. This is to say that assets mainly comprise of resources used for production and value improvement of an entity. Therefore assets include cash,

Corporations issue both stocks and bonds to raise capital to purchase land, equipment, building, or even pay off debt. However, there are several advantages to investors to purchase a stock in a corporation over bonds. First, when you purchase a share of stock you essentially become a part owner in the company. With this ownership comes special privileges, such as the right to vote on who sits on the board of directors and on matters that could

• Assets are the investments made by the providers of finance (in this case existing shareholders).

Sectors such as banking, asset management and brokerage have been liberalised to allow private sector involvement, which has contributed to the development and modernisation of the financial services sector. This is particularly evident in the non-banking financial services sector, such as equities, derivatives and commodities brokerage, residential mortgage and insurance services, where new products and expanding delivery channels have helped these sectors achieve high growth rates

Common share (ordinary shares)is an equity investment which represents common ownership in a company and a claim on a portion of profits which is known as dividends. For example, purchase of Perodua shares mean ownership of the company. Investors also have voting rights which will get one vote per share to elect the board members, who are obliged to supervise the major decisions made by management. Besides, income that generated by the company would belong to the owners which are called as shareholders or stockholders. If the company goes bankrupt and liquidates, the common shareholders only have rights to company assets after creditors, preferred shareholders, and bondholders have been fully paid.