It is the process of analyzing and evaluating a business for the purpose of estimating the true monetary worth of an enterprise for the purpose of the owner or the stakeholders.

It is done to facilitate both the owner of the business and the new acquisitor of the business. It is a pivotal tool used in mergers and acquisitions, it is also used to value a company that decides to go public and wants itself listed on the stock exchange. It is not just used in determining the selling price of the business, in the event of a dispute related to estate, divorce litigation, etc. business valuation comes in handy.

It is the study of finance concerned with the students who want to open a new venture in the future or for those students who wish to understand the concepts or the ways in which new ventures will go regarding their business.

Before an entrepreneur decides to act on his or her plan, they have to consider a wide range of factors or financial decisions. This type of finance teaches the student to consider factors like the source of finance for the venture, where to allocate the available resources, how to use them for optimum benefit. It teaches the entrepreneur all about the financing of a startup.

It is the process of calculating the true value of a stock. There are various methods that are used to calculate the value of the stock. These methods help an investor to make the decision whether to buy or sell the share.

These methods help to determine the intrinsic position of the stock in the financial market. Some of the formulas for determining the fair value are the P/E method, discounted cash flow method, and the Gordon model.

It is concerned with the finance of the government, it studies the process by which the government raises its finance and it also analyzes the different fields of expenditure that the government incurred.

Public finance is not just limited to that, it involves a multitude of financial activity undertaken by the government or that are in its domain, like; the fiscal policy of the government darted towards certain goals, like achieving price stability, economic growth, increase in the equal distribution of income, etc.

Nothing in life comes without risk; when you incept your study in the field of commerce the first lesson you learn is "No risk no gain", the higher the risk you take the more gain you are likely to have. If you invest in equity, the risk is higher, but you stand to gain more too as compared to investing in debentures.

The riskiest financial derivatives could be options and futures as there is no certainty or formula to determine them. In simple words, it is gambling, you either win big or you lose all.

It is the process of forecasting the risk and identifying the solutions to avoid them. The four techniques of risk management are:

• Avoidance: After the identification of risk, the company should avoid the activity that attracts risk.

• Reduction: Reduce the activity that has the potential of forecasted risk.

• Transfer: It is always best to transfer the risk by getting insured.

• Acceptance: Sometimes the acceptance of risk is necessary for other business activities to flourish.

Insurance is a protection against potential loss in the future, it is a risk management technique in the form of policy; where the insured enters into a contract with the insurer for protection against loss, giving a certain amount is called the premium. Under this, the insured party receives full or partial reimbursement for the loss.

Ever since the inception of modern insurance, its realm has been ever-expanding; today the major category of insurance are; health insurance, auto insurance, life insurance, dental insurance, travel insurance, business insurance, etc.

It is the analysis of the financial statement of a company using qualitative formulas. Ratio analysis is a very important tool to discover the financial position of a business, various parameters of the business can be judged with the help of ratio analysis. There is a wide range of financial and accounting formulas that are used in ratio analysis. Some of the major financial ratios are; debt-to-equity ratio, current ratio, quick ratio, return on equity, net profit margin, etc.

The expanded form of forex is the foreign exchange market; it is also known as FX or currency exchange. Forex is basically the decentralization of the global foreign exchange market. It is the place where buying, selling, and distribution of foreign currency take place. The forex market does not determine the value of a currency but it just fixes the current market price of a currency against the other.

The major participants in the global foreign exchange market are large financial institutions. This market works with the major involvement of these institutions at various levels.

It is the consolidation of a business or its assets. Both the terms are studied under the same chapter but have a distinct meaning; there is a whole lot of accounting and finance involved in mergers and acquisitions. A merger is the amalgamation of two companies to form a new company for various reasons, like to gain competitive advantage or in the case of the dissolution of one of the companies.

The acquisition is the process or a situation where one company takes over the other. It happens in the case of one company holding a majority share in comparison to the other.

These are the two most traded of all the derivatives. Derivatives are financial instruments that obtain their value from an underlying. There are two forms of derivative; underlying and over the counter.

Futures are a type of contract where the buyer and seller enter into a contract for the future delivery of the commodity at a specified time and at a specified price.

Options, as the name suggests are a contract between two parties and gives the option to the buyer to sell the derivative of his own volition.

It means that a specific amount of money at present would be valued more in the future because of the potential of its increasing value. The amount of interest earned makes the money more valuable than its previous valuation. The perfect example of the time value of money is our savings account, our money in the bank increases at a certain rate over a given period of time.