Each question needs to be 200 words, 1 reference in apa format QUESTION 1 1. What is finance? Briefly discuss how the study of finance is essential to business today. There are other areas of...

1.
Finance, in the simplest sense, signifies fund handling and the method of obtaining necessary funds. Finance is characterized as financial planning, which involves practices such as spending, borrowing, lending, budget management, saving, and forecasting. Finance is, without a doubt, among the most significant facets of a company. With large sums of money, regular cash flow, and ongoing transactions, handling and controlling all of the above becomes essential. Financial management, in particular, assists the company in determining whether to invest, where to spend it, and when to spend it. Revenue, expenditures, benefit, and shareholder capital are all essential in finance. For most firms, "money is king" also remains true. Marketing is responsible for assisting the company in acquiring and retaining stable clients, and therefore its roles are closely related to cash flow. Human resources and management are also treated as separate business fields of certain organizations. Finance aids in allocating money to meet an organization's priorities while ensuring a balance between expenditures and income. HR hires, trains, and motivates others to work for the same objectives. Finance has a huge influence on all business fields because it aids in the distribution of funds to each sector. Without a financing approach an organization cannot function successfully or adequately because it assists in the optimal utilization of budget (Corporate Finance, 2021)
2.
The risk-return tradeoff is a financial theory that states that the greater the risk, the greater the future reward. To determine an acceptable cost-return tradeoff, investors must weigh a variety of considerations, including total risk exposure, the ability to offset missing assets, and others. Higher risk is combined with a higher likelihood of higher return, whereas lower risk is linked with a...