It may be everyone's dream and hope to have one's own business so as to be the boss or employer instead of being the employee or worker who has to face the pressure given by the employer. Having a business is similar to being an entrepreneur. However, setting up a business is definitely not easy as it requires huge capital as well as

Introduction to finance

Finance can be defined as anything and everything related to monetary matters. It is the science of management of money. It deals with businesses, cash, stocks, shares, debentures, non-liquid assets, funding; almost anything that comes to your mind when you think of money and property. Investments, credits, loans; all fall within the expanse of the word. It is the major factor which decides the power and position of a nation globally; and it is the most dynamic one too.

The Beginning

But never before has the finance world seen a greater turmoil and lesser stagnation than today. There was a similar depression in the year 1929, which stretched for around 10 years in various countries, and caused major economic downturns everywhere in the world. However, the economic problems today are greater in expanse and magnitude.

Risks are classified in various ways. One classified is based on the extent of the damage likely to be caused. Critical or Catastrophic risks are those which may lead to the bankruptcy of the owner. It would happen if the loss is total, like in a tsunami, wiping out everything. It can also happen if the deceased person was heavily in debt. Important risks may not spell doom, but may upset family or business finances badly, requiring a lot of time to cover. The adverse effects of an economic recession are one such. Less damaging are unimportant risks, like temporary illness or accidents.