Classification of Finance

Classification of Finance
Simply, the term finance denotes money or wealth. it is the life blood of economic and business activity. Finance is concerned with the allocation and mobilization of available funds. We can classify finance in following two ways.. 
a) Private Finance: The private finance can be further divided in to personal finance and business finance. The personal finance is related with the acquisition and proper management of economic resource by the individuals and households for meeting their different needs. For example: managing the available resource of Ram's family by his head  is personal finance.
Meanwhile, business finance is concerned with the acquisition, management and utilizing the funds by the private business organization. For example: managing the resources of Munankarmi Group by the finance manager is business finance.

b) Public Finance: The public finance is related with the financial aspect of the government. We can study the government expenditure, public revenue, public borrowing, and financial administration.