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Resource for Information of Finance, Debt & Insurance
Finance
Finance studies and addresses the ways in which
individuals, businesses, and organizations raise, allocate, and
use monetary resources over time, taking into account the risks
entailed in their projects. The term "finance" may thus
incorporate any of the following.
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Debt
Debt is that which is owed; usually referencing
assets owed, but the term can cover other obligations. In the case
of assets, debt is a means of using future purchasing power in the
present before a summation has been earned. Some companies and corporations
use debt as a part of their overall corporate finance strategy.
A debt is created when a creditor agrees to lend
a sum of assets to a debtor. In modern society, debt is usually
granted with expected repayment; in many cases, plus interest. Historically,
debt was responsible for the creation of indentured servants.
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Insurance
Insurance, in law and economics, is a form of risk
management primarily used to hedge against the risk of a contingent
loss. Insurance is defined as the equitable transfer of the risk
of a loss, from one entity to another, in exchange for a premium.
Insurer is the company that sells the insurance. Insurance rate
is a factor used to determine the amount, called the premium, to
be charged for a certain amount of insurance coverage. Risk management,
the practice of appraising and controlling risk, has evolved as
a discrete field of study and practice.
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