Ticket 1 Enterprises (firms) field of activity and its main characteristics

Enterprise (firm) finances.

The process of arranging funds for the successful operation of the business enterprise is called Business finance. It is also the process of using finance-related software for record-keeping. Business finance is used as a modern system for organizations to store and access digital records. So, business finance is not limited to arranging funds for business operations, and it extends to accounting and administration of finances incurred by a company. In the current business milieu, where survival is the key, the importance of business finance is substantially increasing. Here are some of the benefits of business finance:
• To stay on track
• Helps improve daily operations
• Achieve long-term objectives.
• Attracts more business
• Boosts sales
Managers and executives often use business finance to control the company’s financial resources. Therefore, business finance is an activity that benefits the managers and executives as much as it does the organization. So, if you are an aspiring manager or executive anxiously searching on the internet- “what is financial management?” then here’s what it means.
Financial management is evaluating, directing, controlling, and planning the company’s funds. It is a business activity performed by the managers and executives to ensure sustainable and proper utilization of the firm’s resources and funds. Now that you are aware of business finance and financial management let’s understand different types of business finance. And later, we will explore how to make a successful career in business finance.
Here are the main 2 types of business finance frequently used by organizations:
1. Equity finance
Equity financing is the process of raising capital by selling the company using its financial tools like shares, bonds, etc. It is also the process of offering a part of a company’s equity or ownership to an external entity for capital requirements. Here are the different types of equity finances designed for different business needs:

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  Crowdfunding
  
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  Venture capital
  
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  Family and friends
  
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  Investors
  

2. Debt finance
When companies leverage their fixed or other assets to raise capital, it is called Debt financing. Bank loans and bonds are some of the best examples of debt finance. The debt finance’s fundamental framework works on the promise that the company will be repaying the loan amount in a fixed time. Here are some of the types of debt finance:

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  Bank loans
  
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  Asset finance
  
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  Trade finance
  
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  Line of credit
  

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