Businees Finance
Finance is the life blood of any business. in the early stages of development, the business were small. the methods of production were simple. the labour intensive. as time passed on, the business began to grow both in size and in methods, of production. The use of expensive machinery, round about methods of production, the employment of large number of workers, the bulk purchase of raw material, the marketing of goods at the national and international level etc. have made the business now capital intensive. The company from of organization is being relied upon more now.
Need for Finance.
Finance is the life blood of any business. in the early stages of development, the business were small. the methods of production were simple. the labour intensive. as time passed on, the business began to grow both in size and in methods, of production. The use of expensive machinery, round about methods of production, the employment of large number of workers, the bulk purchase of raw material, the marketing of goods at the national and international level etc. have made the business now capital intensive. The company from of organization is being relied upon more now.
What is business Finance?
Finance is the base of business. It is required to purchase assets and for the flow of economic activities. It is infact the life blood and nerve center of industrial and commercial enterprises.
Definition. business finance may be defined as the provision
of money at the time when it is needed by a businees.
According to howard and upton, "Finance may be defined
as that administrative area or set of administrative
functions in an organization which relate arrangement
of cash and credit so that organization may have the
means to carry out the objectives as satisfactorily
as possible.in the words of B.O. wheeler, "businees
financeis that businees activity which is concerned
with the acquisition and conservation of capital funds
in meeting the financial needs and overall objective
of businees enterprise." in the light of the definition
given above, the main characteristics of businees finance
are as under:
i) Includes all types of funds. businees finance covers all
types of funds employed in businees; for example (a) Owned funds
(ii) borrowed funds.
ii) Required by all types of organization businees. Finance is
required by all types of organization whether they are operating
on large or small scal,commercial or industrial enterprises.i) Includes all types of funds. businees finance covers all
types of funds employed in businees; for example (a) Owned funds
(ii) borrowed funds.
ii) Required by all types of organization businees. Finance is
required by all types of organization whether they are operating
on large or small scal,commercial or industrial enterprises.
iii) Amount required varies. the amount of business finance required
varies with the nature and size of the organization. the larger the
size of business undertaking, the larger is the amount of finance
required vica varies.
iv) Funds required vary from time to time. the amount of business
finance required varies from time to time when business is expanding,
it needs larger funds and vice versa.
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