Question

What is the role and importance of finance to business concerns?

Answer 1

Business finance refers to capital funds and credit funds invested in the business. Financing means making money available when it is needed. Business finance may be defined as planning, raising, managing and controlling all the money used or capital funds of any kind used in connection with the business. Finance is a major function of any business enterprise. It deals with the arrangement of an adequate amount of capital to achieve the objective of the enterprise."Business finance involves a set of administrative functions in an organization which relates with the arrangement of cash and credit so that the organization may have the means to carry out its objective as satisfactorily as possible."