Personal Finance Essay

ain finance refers to the principal that is applied to the monetary decisions of an individual or a family unit. It addresses issues such as the ways in which the individuals or families obtain finance, budget, unless and spend the monetary resources of a company oer a assumption period of time while at the same time winning in account the financial risks and the future life events that ar colligate to the businesses activities. The profits or loss of a company are derived by determining the incomes of a company and the expenses that are incurred by a company.If the incomes are more(prenominal) than the expenses the company applys profit for the company. If the expenses of the company are more than the incomes indeed the company incurs losses in the financial period of a company. Assumptions The income of Donna Terrell is estimated to be $3333 per month since it is assumed that he earns a salary that is equally distributed end-to-end the grade. The expenses of Donna Terre ll are also assumed to be evenly distributed throughout the year except in the months where Donna Terrell specified that the expenses were incurred in those months.After Sherman acquisition of his new-made job on June 2003 and his decision to assist Donna Terrell was a positive drop dead since after the month of June the Donnas business started to earn profits since in the previous months the business was incurring losses, but after June 2003 the company started to knuckle under profits for the company, thus was in a position to run it affairs effectively (http//64. 233. 169. 104/search? q=cacheDmCJZy7zP6kJ) It is also assumed that Sherman would earn a salary that would be $1500 per the month that followed the month of June up to declination 2003.In the first quarter of the year Donna business had been incurring losses from January to whitethorn 2008 since the amount of losses have been increasing rapidly since the expenses of the business were more than the incomes of the busin ess. After Mr. Sherman decision to assist Mr. Donna in giving him financial helper the business started to improve in its consummation. The business incomes was greater than the expenses as from July to December of the Year 2003 and this loand to the increased profits of the business as it continued with its performance until December 2003. As at December 2003 the Company had profits that were over $13000.The management of companies can run their activities if they ask for financial assistances from friends and also financial institutions since after the Mr. Sherman decision to assist Mr. Donna the performance of the company started to improve. The instances where the management of companies runs new(prenominal) business activities that generate revenue to a company this can contribute to the profitability of the company since the additional income increases the companies working capital that enables the company to generate as much revenue to the company hence its increased ret urns and at long last this leads to the growth of the company.The management of companies should also plan their finances properly so as to avoid budget deficits as this can affect the performance of the company and also its reputation as this can result to shrivel sales volume for a company hence in just about cases due to the poor management of the companies finances the company go into excretion that can lead to the closure of the company.