Education and Career Forum

what is the meaning of finance
what is mean by debenture

Finance deals with the raising of money from various resources like
-Debt resources
-Equity resources and
proprer allocation of funds for the benefit of the organization.

Finance department has a vital role to play in the organization. If the finance department is unable to provide the funds for for various needs, the company would no longer survive.

If the funds are not being invested by the finance department on right project, obviously, the firm will incurr lossess.

So, the success or failure of an organization is going to be decided by Finance department.

As per Debenture, it is a debt instrument.

Debt Instrument in the sense through which debt is being raised by public and organizations.

Generally, if the public sector companies issues these debt instruments, then they are called bonds.

Where as if a private sector company issues these debt instruments, it will be called as Debenture.

There is some face value for Debenture. Private sector companies will issue these debentures to public and will get the money in order to meet the organization needs.

Public who have taken debentures from private sector companies will get coupon rate which is fixed.

hi
The term 'finance' has a few meanings: 1: the management of money and credit and banking and investments; 2: obtain or provide money for; 3: the branch of economics that studies the management of money and other assets; 4: sell or provide on credit; 5: the commercial activity of providing funds and capital

A debenture is defined as a certificate of agreement of loans which is given under the company's stamp and carries an undertaking that the debenture holder will get a fixed return (fixed on the basis of interest rates) and the principal amount whenever the debenture matures.

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what is finance