“Beware of little expense. A small leak will sink a great ship”

“Beware of little expense. A small leak will sink a great ship”

“Business Finance”

The business community and people use different mean (source) of payment like currency, cheque and bill of exchange etc. for the settlement of business dealings or transactions. Therefore, the arrangement of these sources is very essential for the life of business.
The money (capital) obtained for the purpose of business is spent on the purchase of land, buildings, machinery, furniture and routine expenses. The arrangement of capital, its management and use for business transactions is called business finance or investment.

“Business Finance is the flow of capital and credit that makes business possible”

Main points of Topic
  1. Flow of capital and credit
  2. Employed in the operation of an enterprise
  3. To achieve the objectives of business

Nature of Business Finance

  1. Business finance includes all types of capital or funds used in business
  2. Business finance is needed in all types of business (large or small and manufacturing or trading etc.)
  3. Business finance involves not only the estimation of the amount of funds but also the sources of finance, investment of funds raised, management of cash, disposal of earnings and control of funds.
  4. The amount of business finance required differs from one business firm to another depending upon its nature and size.
  5. The availability of finance determines the scale of operation of business.

Seerat Francis

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