Showing posts with label Public Finance. Show all posts
Showing posts with label Public Finance. Show all posts

Thursday, May 26, 2011

Investment Definition

Investment is defined as money or investment in a company or project for purposes of profit. Basically, the investment is to buy an asset that is expected in the future be resold with a higher value.

Investments can also be regarded as a delay current consumption for future consumption. Expectations on future profit is compensation for time and risk associated with any investment made.

Investment

Someone would have to think about the future at which time the needs of living continue to rise, demand is meant to be educational, transportation, health, shelter, the need for recreation, worship, until the need for a period not productive. With this background, the person aside a portion of its income in the productive and to invest for the period in which they become less productive.

Tuesday, May 24, 2011

Simple Cash Flow Management

If business is the body of human, then cash flow is the blood that keeps the body awakes. Cash flow is important thing and crucial for business, big or small of business. Without a good management of cash flow, many business, although profitable business, can be end up in bankruptcy because cash-in and cash-out situation is not balance. The amount of cash in is less than the amount of cash out at monthly.


These simple steps below can help the balance of cash flow.
Prepare cash flow projections for the future (next month or year). It will help the firm to avoid problem by giving a warning before the problem comes. Projections are made by noticing the factors such as customers' payment, suppliers' payment, upcoming expenses, and upcoming incomes.

Public Finance

Public finance is a field of economics concerned with paying for collective or governmental activities, and with the administration and design of those activities. The field is often divided into questions of what the government or collective organizations should do or are doing, and question of how to pay for those activities. This definition of public finance is based on www.en.wikipedia.com.


The purview of public finance is considered to be threefold: governmental effects on
  1. Efficient allocation of resource,
  2. Distribution of income, and
  3. Macroeconomic stabilization.
The proper role of government provides a starting point for the analysis of public finance. In theory, under certain circumstances private markets will allocate goods and services among individuals efficiently (in the sense that no waste occurs and that individual tastes are matching with the economy's productive abilities).