The financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cashflow generated by the project.In other words, project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights, and interests held as secondary security or collateral. Whenever the word finance strikes your ears, the very first thing that strikes your mind is money.

But is the scope of finance merely related to money? Well for a layman, the answer may be yes. But all you need to do is a little pondering and you will easily understand that finance is something much more than money terminologies. It is one of the most sought after courses in business schools and in job sectors. There must be something which makes it so popular and in demand. This article is written to find out few of the reasons behind popularity of finance. Let us start with a well structured and qualified finance definition. Academically speaking finance is a branch of economics which deals with resource allocation and investment.

So what conclusions can we draw from this finance definition? I'll tell you. Finance deals with matters related not only to money but also with matters related to market. Now this definition certainly expands the domain and scope of finance. And the most crucial part is the inter relativity of this two matters with each other. This interaction is highly dynamic and volatile and also requires high level of insight and expertise to handle the environment. That is the reason of high demand of financial experts. So now we know the importance of finance. Now let us analyze how business schools imbibe these finance definitions in the minds of budding managers.

Well we know that there are some predefined rule-sets and frameworks in economics. It is these frameworks which are taught to the budding managers. Inside this framework, it is the individual's ability, creativity and insight that need application and implementation. The business schools do provide number of real life opportunities where the students can try and test their approach in the framework. With increase in exposure and practise the managers tend to find the best possible approach to different scenarios and hence become efficient managers. It is nothing but trial and error method which is taught to these managers. Process of raising funds or capital for any kind of expenditure.

Consumers, business firms, and governments often do not have the funds they need to make purchases or conduct their operations, while savers and investors have funds that could earn interest or dividends if put to productive use. Finance is the process of channeling funds from savers to users in the form of credit, loans, or invested capital through agencies including commercial banks, savings and loan associations, and such nonbank organizations as credit unions and investment companies. Finance can be divided into three broad areas: business finance, personal finance, and public finance. All three involve generating budgets and managing funds for the optimum results. See also corporate finance.

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