An institution needs money (A), and a finance company (B) provides for the resources of the institution, which may involve granting them a loan. A gets the money they need for their companies which are provided for by B, while B earns through the lending process through the interests they gain.
Since the early days of human evolution, Finance is consider backbone of the Business. It’s remain one of the most common and important element in the modern business world. In simple term Finance is the management of money for our financial needs. It’s also called the science of funds management.
Saving money and borrowing money is the base of the finance. Finance is one of the most important aspects of business management. Without proper financial planning a business is unlikely to be successful. Financial management is important to ensure a secure future, both for the individual and an organization.
Insurance term can be defined as a form of risk management mainly used to protection against unexpected future loss. In simple Insurance can be defined as the covered against unforeseen loss. It is a written contract or certificate of insurance in which insurance company promise to reimburse in the case of loss.
In broad term Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance can be used as long term financial investment which can give a person high returns in later years.