Define business finance. Briefly outline the importance of business finance.
Dear student.
Business finance basically refers to fund and credit employed by business. Every organisation needs finanance to purchase assets,goods etc and for the flow of economic activities.
Business Finance includes those business activities that are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of a business enterprise.
Importance of Business finance
1) A business needs finance to meet certain contigencies and unexpected problems that may arise in future. So business should be ready with finance to meet these problems
2) A business needs finance to avail any business opportunity that may present themselves.
3) Sound financial position helps the enterprise to attract more talented man power and introduce latest technology changes.
Regards
Business finance basically refers to fund and credit employed by business. Every organisation needs finanance to purchase assets,goods etc and for the flow of economic activities.
Business Finance includes those business activities that are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of a business enterprise.
Importance of Business finance
1) A business needs finance to meet certain contigencies and unexpected problems that may arise in future. So business should be ready with finance to meet these problems
2) A business needs finance to avail any business opportunity that may present themselves.
3) Sound financial position helps the enterprise to attract more talented man power and introduce latest technology changes.
Regards