Personal Finance

Running Head : PERSONAL FINANCE

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Personal Finance

Personal 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 save and spend the monetary resources of a company over a given period of time while at the same time taking in account the financial risks and the future life events that are related 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 than the expenses the company generates profit for the company . If the expenses of the company are more than the incomes then 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 throughout the year . The expenses of Donna Terrell 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 job on June 2003 and his decision to assist Donna Terrell was a positive move since after the month of June the Donna 's business started to earn profits since in the previous months the business was incurring losses , but after June 2003 the company started to generate profits for the company , thus was in a position to run it affairs effectively (http /64 .233 .169 .104 /search ?q cache :DmCJZy7zP6kJ

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 December 2003

In the first quarter of the year Donna business had been incurring losses from January to May 2008 since the amount of losses have been increasing rapidly since the expenses of the business were more than the incomes of the business . After Mr . Sherman decision to assist Mr . Donna in giving him financial assistance the business started to improve in its performance . The business incomes was greater than the expenses as from July to December of the Year 2003 and this contributed to the increased profits of the business as it continued with its operation 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 other 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...