what is finance?
finance
the management and study of money and investments
an amount of money that must be paid every certain period of time and cannot be changed.
fixed cost
What is financing?
It is the process of providing funds for business activities, making purchases or investing
is a way the government funds your ideas and projects to provide public services and stimulate the economy.
Grants
What is a cognitive bias?
how a particular person understands events, facts and other people
budget
the stipulated amount of money to spend on an specific expense
it is not necessary or mandatory. It can be described as a luxury
discretionary expense
The act of raising capital by borrowing money from a lender or a bank, to be repaid at a future date
debt finance
a benefit given to an individual, business, or institution, usually by the government. It can be direct (such as cash payments) or indirect (such as tax breaks).
subsidy
loss aversion
Perceiving that the pain of losing is psychologically twice as powerful as the pleasure of wining
Revenue
Total amount of income generated by a business
they vary with output. They depend on the volume of production
variable costs
raise money by selling shares of the business
equity finance
sums that usually do not have to be repaid but are to be used for defined purposes.
Grants
Hyperbolic discount
to value immediate though smaller rewards more than long-term larger rewards
costs
the amount of money paid to produce a good or a service
Regular expenses, however there is some control over how much money to spend and the time to pay the debt
flexible expenses
money raised within the company through the sell of shares or its own profit
Internal finance
refer to direct contributions, tax breaks and other special assistance
subsidy
agreement between lender and borrower in which the money will be paid back with a fee
electric bills and utilities are examples of this type of costs
semi-variable
money raised from outside the business such as debt finance or angel investors.
external finance
Type of financing service provided to low-income individuals who otherwise wouldn't have financial services
Microfinance