B Com Exam > B Com Videos > Public Finance > Private financing, Public finance
Private financing, Public finance Video Lecture | Public Finance - B Com
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FAQs on Private financing, Public finance Video Lecture - Public Finance - B Com
| 1. What is private financing? |  |
Private financing refers to the process of obtaining funds from private sources such as individuals, private companies, or non-bank financial institutions. It involves borrowing money from these entities to meet financial needs, such as starting a business, expanding operations, or funding a project. Private financing often involves negotiations and agreements between the borrower and the lender, including repayment terms, interest rates, and collateral requirements.
| 2. What is public finance? | |
Public finance refers to the management of a government's revenue, expenditure, and debt. It involves the collection of taxes, the allocation of funds for various public programs and services, and the management of public debt. Public finance plays a crucial role in ensuring the stability and development of a country's economy. It involves various aspects such as budgeting, fiscal policy, and public expenditure management.
| 3. What are the advantages of private financing? | |
Private financing offers several advantages. Firstly, it provides access to funding for individuals and businesses that may not qualify for traditional bank loans. Private financing also offers flexibility in terms of repayment terms and interest rates, as negotiations can be made directly with the lender. Additionally, private financing can be a quicker option compared to traditional bank loans, as it may involve fewer bureaucratic processes.
| 4. What are the advantages of public finance? | |
Public finance offers several advantages. Firstly, it provides a stable and reliable source of funding for government projects and services. Public finance also allows for the implementation of economic policies and programs that aim to promote growth and development. Additionally, public finance contributes to the redistribution of wealth through taxation and the provision of public goods and services, such as healthcare and education.
| 5. What are the differences between private financing and public finance? | |
Private financing and public finance differ in several aspects. Private financing involves borrowing from private sources, while public finance involves managing government revenue and expenditure. Private financing often requires negotiations and agreements between the borrower and the lender, while public finance involves a more structured and regulated process. Furthermore, private financing is typically used for individual or business needs, while public finance focuses on funding government initiatives and services.
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Dec 24, 2024 Last updated |
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