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Running head: FINANCIAL MANAGEMENTFinancial ManagementNameInstitution AffiliationDate1FINANCIAL MANAGEMENT2Finance and Financial ManagementThe word finance refers to the money system or the study of money. It seeks to describeall financial instruments. Finance also explains how money can get managed. It defines moneyfrom the beginning of its creation and the different ways in which it can get used. The financialsystem includes investments, credit, liabilities, and banking (Weaver & Weston, 2001).Financial management, on the other hand, entails directing, controlling, organizing and planningof commercial activities. It means that management principles get applied to the financial sector.Anything that deals in the use of finances is well utilized and procured.With financial management, an institution can allocate funds. Finance has a division ofdifferent sub-areas which include personal finance, corporate finance, and public finance.Personal finance involves management of ones own finances. It may also be family finances.Funds get managed according to individual or family needs. Corporate finances are finances thatare owned by an organization. It may be regarding investments or bank loans. Public financerefers to funds that are owned and controlled by the government. The government can controland allocate resources accordingly (Weaver & Weston, 2001).Forms of Business OwnershipThe first form of business ownership is the sole proprietorship. Sole ...


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