The term finance can acquire different meanings at any given point in the time depending On the context of use. As a subject, it is very broad; thus making it almost impossible to have One straight “off the mill” definition that covers the whole subject matter. Perhaps that explains why Even the dictionary explanation of the word finance is not specific for instance, the Oxford advanced Learners’ dic Of current English describes finance as “the science of or the management of money or simply money “. From this description. Three distinct definitions of money can be seen viz: (A) Finance defined simply as money (B) Finance defined as the management of money (C) Finance defined as a scientific study of money. A fourth possible definition is to see Finance as the provision of money. The first Sense in wich Finance simply means money is very common especially to the lay man. It is in this sense that we often say that a club or organization is either in good Or bad finances… meaning that the club or organization has adequate funds (money) Or that it lacks money. This concept of finance is, however narrow. A broader concept of finance, wich is perhaps more More technical, is that wich views finance as the management Of money. The management of money transcends all levels of Human activity—from the individual through the corporate bodies To the government. At the individual level, the financial problem Is how to maximise his well—being using the resources available To him. Finance for the individual therefore deals with how the Individual shares his income between consumption and investment, How he raises money to provide for additional consumption or Saving and how he makes his choice among several investment Opportunities. At the corporate level, the objective is usually To maximise the shareholders wealth. Finance in this respect will Therefore deal with the various sources and costs of funds and Their alternative uses for purpose of achieving the corporate goal. Governments at various levels also face the problem raising money And effectively allocating same to meet the stated objectives. You Can see that Finance, viewed as the management of money permeatures All aspects of our daily life. Little wonder therefore that finance Has gradually evolved as a discipline/course of study. Finance as a discipline has been variously described by many author. For instance , a Harvard economists-John Kenneth Galbraith thinks Of finance as the study of money.. whence it came and where it went. A more comprehensive description of finance is given by Lawrence D. Schall and Charles W. Harley. According to them, finance is “a body of facts, principles And theories dealing with the raising and using of money By individuals, businesses and governments. “It also includes The study of financial institutions and markets and the Activities of governments especially those that are relevant To the financial decisions of firms and individuals. This is Because the flow of funds from the areas of surplus (Surplus economic units) to the areas of need (deficit economic Units) is done through these institutions within the confines Of accepted rules and regulations. Thus far we have seen that finance as a discipline is board based. It then follows that for effective coverage and proper understanding Of subject, it must of necessity be divided into different sub—themes. Hence we have such sub—themes as personal finance, International Financial institutions, public finance, business finance etc. we are Concerned with the study of the problem of raising and allocating Financial resources for effective business operations. Nevertheless, We shall draw upon the other areas of finance those facts that are Necessary for the proper understanding of our subject. Before I leave this discourse on the meaning of finance, let us Quickly add that finance may be interpreted to mean the provision Of money. It is in this sense that we can say that STARBEST NIG. LTD Will Finance the 1995 NUGA GAMES meaning that the Above named company will provide the money for the games.
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