TOPIC:- TYPES OF FINANCE

A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor in commerce (accounting and finance)
Under the Faculty of Commerce.
By
Yadav Sonali Sabhajeet
Under the Guidance of
Ms. RATNAVALI MAM
Changu Kana Thakur Arts,Commerce and Science College.
WHAT IS FINANCE

Finance is defined as the management of money and includes activities like investing, borrowing,
lending, budgeting, saving, and forecasting. Financing is the process of providing funds for business
activities making purchases or investing.The use of financing is vital in any economic system, as it
allows companies to purchase products out of their immediate reach.
FINANCE CAREERS

• Commercial banking
• Investment banking
• Corporate finance
• Treasury
 FEATURES OF FINANCE

Investment Profitable Optimal Mix of System of Future Decision

Opportunities Opportunities Funds Internal Control Making
OBJECTIVES OF FINANCE
FUNCTIONS

Investment Decisions

Financing Decisions

Dividend Decisions

Liquidity Decisions
IMPORTANCE OF FINANCE FUNCTIONS

Identify Need of Finance

Identify Sources of Finance

Comparison of Various Sources of Finance

Investment
 1.Debt
Financing

TYPES OF
FINANCE
2.Equity
Financing
DEBT FINANCING

Debt Financing
as being divided
1. Short-Term 2. Medium-Term 3. Long-Term
into three types
Finance Finance Finance
of finance they
are:
ADVANTAGES/DISADVANTAGS OF DEBT FINANCE

DISADVANTAG
ADVANTAGES
S

Qualification
Tax Advantage Easier Planning Discipline
Requirements
ADVANTAGES/DISADVANTAGS OF EQUITY FINANCE

DISADVANTAGE
ADVANTAGES
S

Learn And Gain

Less burden Share Profit Loss of Control
from Partners
RESPOSIBILITY OF FINANCE

• Fund Raising
• Allocation of the funds in the right place

• Profit and its planning

• Considering the capital market
FINANCE ACT, 2019

Section - 1
• Short title and commencement
Section - 2
• Income-tax
Section - 3
• Amendment of section 16
BENEFITS OF FINANCE

• GREATER FLEXIBILITY
• REDUCE TOTAL COST OF OWNERSHIP (TCO)
• IMPROVES CASH FORECASTING
• IMPROVE CASH FLOW
 CONCLUSION OF FINANCE

Finance to be more precise is concerned with the management

of,
1.Owned funds (promoter contribution),
2.Raised funds (equity share, preference share, etc.), And
3.Borrowed funds (loans, debentures, overdrafts, etc.
THANKYOU