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Assigment Module 1

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Submitted By tmanuel
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1-finance is essentially any transaction in which money or money like instrument is exchanged for another money or money like instrument. So we can say the concept of finance is very old it, has taken place probably since the roman or the Chinese dynasty era. Finance is used in the market.
A market is a place that allows forces of demand and supply to operate. Where sellers and buyers trade services goods, contracts, for money or barter, this is the place where finance also takes place. You can’t have one without the other. There are different types of markets, according to our book in United States there is real estate market, the internet and commodity market. All these market have one thing is common which is finance, they all involve some type of trade, information trade, goods trade and property exchanged for some type of money.

2-Economic capital is the money value, how much monetary asset it has to cover expenses, and other financial needs; it’s what we consider solvency. Financial capital it’s a much broader term, it’s anything related to money and assets to a company, it’s a dollar value claim on economic capital which includes cash, accounts receivables, stocks, and bonds.
3-Oportunity cost is the benefits you could have received by taking an alternative action, for example investing money in a savings account where you get 3% interest or on a another type of investment where you could have received 10% interest. Entrepreneurs face this dilemma every time they make a decision. Every decision could be life changing; starting a new business or stay with the company, decisions of selling one product or another, for an entrepreneur these choice changes could make or break the business. Opportunity cost for an entrepreneur also includes time, how much time does the person spend working on his own business compare to the time working as an employee. The

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