General information about the meaning of the term "finance" with a focus on corporate finance.

1. L. Yakupova
Moscow State University, Faculty of Foreign Languages and Area Studies
Moscow, 2015

2. Definitions
the money that is needed to
support a business
the control of how large
amounts of money should be
spent
Cambridge Dictionaries Online

3. Finance
Personal
finance
Corporate
finance
Public
finance

4. Personal finance
 Financial position:
net worth = assets – liabilities
household cash flow = expected
income - expected expenses
 Adequate protection (insurance)
 Investment and accumulation goals
 Retirement planning
 Estate planning

5. Corporate finance
 Investment management – what, how
much and when to invest
 Risk management (market risk +
credit risk)

6. Public finance
 Distribution of income for the citizens
and ensuring the economic stability of
the state
 Budgeting (the distribution of funds)

7. Corporate Finance
 managing the capital;
 calculating taxes;
 determining prices;
 analyzing investing options;
 paying dividents to shareholders;
 merging with or acquiring another
firm.

8. Managing the capital
 Equity (собственный капитал) = assets (активы) –
liabilities (обязательства)
 A balance sheet is a summary of the financial
balances of a business organization (балансовый
отчет/лист)

9. An example of a balance sheet

10. Assets
tangible
current fixed
intangible

11. Liabilities
 paying the loans;
 transferring assets to another company;
 various economic losses resulting from the
company’s past actions.
liabilities
current
long-
term

12. Taxation
 Federal income tax (федеральный подоходный
налог)
 Local income tax (местный подоходный налог)
 Payroll tax (налог на зарплату)
 Unemployment tax (налог на страхование по
безработице)
 Sales tax (налог с оборота/продаж)
 Foreign tax (иностранный налог)
 Value-added tax (налог на добавленную
стоимость)

13. Investment
 Bonds (облигации) is a document given to someone
who invests money in a company, promising to pay
back with interest
 Stocks (акции) is one of the equal parts into which
the value of a company is divided
 Real estate property (недвижимость) is comprised of
land and the buildings on it as well as the natural
resources of the land including uncultivated flora and
fauna, farmed crops and livestock, water and
minerals

14. Examples of bonds

15. Examples of bonds

16. Examples of bonds

17. Examples of stocks

18. Examples of stocks