Finance is the allocation of assets, liabilities, and funds over time, process, mediums to reap the most out of the activity. In other words, managing or multiplying funds to the best in interest while tackling the risks and uncertainties. Finance is majorly divided into three segments: Personal Finance, Corporate Finance, and Public Finance.
Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. Economics focuses on the actions of human beings, based on assumptions that humans act with rational behavior, seeking the most optimal level of benefit or utility. The building blocks of economics are the studies of labor and trade.
Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.
Corporate finance is concerned with how businesses fund their operations in order to maximize profits and minimize costs. It deals with the day-to-day operations of business cash flows as well as with long-term financing goals.
Applied economics is the use of the insights gained from economic theory and research to make better decisions and solve real-world problems. It is a popular tool in business planning and for public policy analysis and evaluation. Individuals can also benefit from applying economic thinking and insights to personal and financial decisions.
Microeconomics studies the decisions of individuals and firms to allocate resources of production, exchange, and consumption. It deals with prices and production in single markets and the interaction between different markets but leaves the study of economy-wide aggregates to macroeconomics.
Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows.
A broader definition of banking is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. Investment banks, financing companies, and money lenders are just some of the institutions that have engaged in banking.
A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labor equivalent.
Business risk is any exposure a company or organization has to factors that may lower its profits or cause it to go bankrupt. The sources of business risk are varied but can range from changes in consumer taste and demand, the state of the overall economy, and government rules and regulations. While companies may not be able to completely avoid business risk, they can take steps to mitigate its impact, including the development of a strategic risk plan.
Entrepreneurship is one of the resources economists categorize as integral to production, the other three being land/natural resources, labor, and capital. An entrepreneur combines the first three of these to manufacture goods or provide services. They typically create a business plan, hire labor, acquire resources and financing, and provide leadership and management for the business.
Econometrics is the use of statistical methods using quantitative data to develop theories or test existing hypotheses in economics or finance. It relies on techniques such as regression models and null hypothesis testing and can also be used to try to forecast future economic or financial trends.
Ethical investing refers to the practice of using one's ethical principles as the primary filter for the selection of securities investing. Ethical investing depends on the investor's views. Ethical investing is sometimes used interchangeably with socially conscious investing; however, socially conscious funds typically have one overarching set of guidelines that are used to select the portfolio, whereas ethical investing brings about a more personalized result.
Islamic economics is the study of economics in the light of Islamic principles or bringing economics in consonance with the Sharia. But this would imply that the definition of the science of economics has a universal acceptability which it does not.
Islamic finance refers to how businesses and individuals raise capital in accordance with Sharia, or Islamic law. It also refers to the types of investments that are permissible under this form of law. Islamic finance can be seen as a unique form of socially responsible investment.