4R’s

Financial Analysis
1. Finance is managing of funds considering
Time, Money and Risk.
2. Finance is sub-classification of Economics.
3. Meaning: Finance is the branch of
economics dealing with procurement,
management and utilization of funds in a
judicious manner.
4. What is it? An derivative of Economics
dealing with arrangement and administration of
money.
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Financial Analysis
5. Based on Time value of money.
6. Concerned with Optimization of funds to
increase wealth or maximize profits.
7. Determines How funds are actively and optimally
managed and utilized?
8. Aim Maximization of Wealth.
9. Explains Reasons for trade surplus and deficit,
affecting the economy as a whole.
10. Branches of finance include personal, corporate
and public etc.
11. Finance is managed by individual or banks.
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Financial Analysis
12. Accountancy, Chartered Financial Analyst etc
13. Operates both at macro & micro level –
Corporate or individual level.
14. Finance is based on specifications of a
product. It uses tools to estimate value of money
after a certain period of time.
15. Financial decisions can be easily
implemented and amended within a certain
period of time by an individual or Corporate, in
order to maximize profits.
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Financial Analysis
16. Basics of Financial Modeling, Valuations,
Mergers and acquisitions, NPV, IRR.
17. Investment outlay and cost of project.
18. Means of financing.
19. Cost of capital
20. Projected profitability
21. Breakeven point
22. Cash flows of the project
23. Projected financial position.
24. Level of risk
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4R’s

Economics Analysis

1. Economics is management of goods and

services, including production and
consumption and the factors affecting them.
2. Economics acts as a superset to Finance.
3. Meaning: Economics studies the behavior
of humans, as a link between ends (wants) and
limited means (resources) to fulfill them,
having alternative uses.

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4R’s

Economics Analysis
4. What is it? Economics deals with production,
consumption, distribution and exchange of
commodities for money.
5. Based on Money value of time.
6. Concerned with Decision making regarding
the way resources are to be used, to attain
maximum contentment.
7. Determines How humans make decisions,
when there is scarcity of resources?
8. Aim Optimization of scarce resources.
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Economics Analysis
9. Explains Reasons for fluctuation in the rate of
interest, inflow and outflow of cash, etc.
10. Branches of economics include macro and
micro economics.
11. Economists are employed by private and
public sector.
12. Philosophy of Economics, Political
Economics, Laws & Economics.
13. Works at a macro level – at a Country, State,
Region or Industry level.
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Economics Analysis
14. Deals with creating, amending or determining
policies which affect the entire market and all
industries at a uniform scale.
15. Decision power lies with the Government or
regulatory bodies.
16. Economics provides theories and strategies
that help in developing the framework of any
company, industry or sector, with a broader
aspect of monetary policies.

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Economics Analysis
17. Economy-related decisions cannot be easily
changed – they require a very high level of
analysis, as they impact the whole economy and
not any particular section.
18. Macroeconomics, Microeconomics, GDP,
Inflation, Exchange Rate, currency, Crude,
Commodities, Aggregate Demand & Supply,
Elasticity, Savings & Investing.
19. Distribution of income in the society.
20. Levels of saving by the society.
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Economics Analysis

21. Levels of investment in the society.

22. Self sufficiency.
23. Employment.
24. Social order.
References
1. Projects - Planning, Analysis, Selection, Financing,
Implementation & Review by Prasanna Chandra, Mc
Graw Hill Publishing, 2014.
2. https://keydifferences.com/economics-finance.html
3. https://www.educba.com/finance-vs-economics/
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