Financial environment is the integral part of economy which is represented by market, firms and investors. Financial environment represents everything what has the direct influence on the circulation of the capital and the institutions which take the active part in this process.
The biggest element of the sector of financial environment is the market or the place where the exchange or goods, services and capital occurs. The market is a varied element which is divided into numerous sectors which offer their own types of goods and services and their own group of consumers. The market exists according to the principles of fair competition where the more quality and affordable products attract attention of customers, and only the strongest and well-structured firms can survive there.
The second component of financial environment is a firm or business which belongs to the private owner and serves as the source of financial profit to him. Every firm has its definite strict structure, the set number of employees who fulfill their duties for money. The firm produces goods and services and sells them to consumers receiving money for the production. The firm is successful only if it attracts many clients and its profit is higher than the cost of production.
Investors is the next component of the financial environment and it is represented by the organizations and individuals who donate and lend money into the development of the firms with the aim to make more money than they have lent. The most common types of investors are the rich individuals, big corporations, banks and sometimes the government of the country is it safe to buy lexapro online which makes orders of the national importance.
Financial environment is the part of economy which includes the participants of the financial relations. The problem is surely worth student’s attention, because if one is interested in finance, he will find the issue useful for the detailed analysis. One is able to observe the matter on financial environment in detail on the example of the definite case suggested by the professor. The young professional will have to observe the case scrupulously in order to understand the cause and effect of the problem on financial environment and solve the issue in the right alternative manner comparing the solution to the real existing one.
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