Business finance deals with raising, administering, and using funds for business operations and goals. It includes planning and controlling the funds that privately owned businesses use in non-financial industries. Corporate finance also focuses on budgeting, forecasting, cash management, credit administration, investment analysis, and procuring funds for businesses. Financial management is an integral part of overall business management concerned with efficiently obtaining and using capital funds.
Business finance deals with raising, administering, and using funds for business operations and goals. It includes planning and controlling the funds that privately owned businesses use in non-financial industries. Corporate finance also focuses on budgeting, forecasting, cash management, credit administration, investment analysis, and procuring funds for businesses. Financial management is an integral part of overall business management concerned with efficiently obtaining and using capital funds.
Business finance deals with raising, administering, and using funds for business operations and goals. It includes planning and controlling the funds that privately owned businesses use in non-financial industries. Corporate finance also focuses on budgeting, forecasting, cash management, credit administration, investment analysis, and procuring funds for businesses. Financial management is an integral part of overall business management concerned with efficiently obtaining and using capital funds.
According to the Wheeler, Business finance is that business activity which
concerns with the acquisition and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise. According to the Guthumann and Dougall, Business finance can broadly be defined as the activity concerned with planning, raising, controlling, administering of the funds used in the business. In the words of Parhter and Wert, Business finance deals primarily with raising, administering and disbursing funds by privately owned business units operating in nonfinancial fields of industry. Corporate finance is concerned with budgeting, financial forecasting, cash management, credit administration, investment analysis and fund procurement of the business concern and the business concern needs to adopt modern technology and application suitable to the global environment. According to the Encyclopedia of Social Sciences, Corporation finance deals with the financial problems of corporate enterprises. These problems include the financial aspects of the promotion of new enterprises and their administration during early development, the accounting problems connected with the distinction between capital and income, the administrative questions created by growth and expansion, and finally, the financial adjustments required for the bolstering up or rehabilitation of a corporation which has come into financial difficulties. TYPES OF FINANCE Finance is one of the important and integral part of business concerns, hence, it plays a major role in every part of the business activities. It is used in all the area of the activities under the different names. Finance can be classified into two major parts: Private Finance, which includes the Individual, Firms, Business or Corporate Financial activities to meet the requirements. Public Finance which concerns with revenue and disbursement of Government such as Central Government, State Government and Semi-Government Financial matters. DEFINITION OF FINANCIAL MANAGEMENT Financial management is an integral part of overall management. It is concerned with the duties of the financial managers in the business firm. The term financial management has been defined by Solomon, It is concerned with the efficient use of an important economic resource namely, capital funds. The most popular and acceptable definition of financial management as given by S.C. Kuchal is that Financial Management deals with procurement of funds and their effective utilization in the business. Howard and Upton : Financial management as an application of general managerial principles to the area of financial decision-making. Weston and Brigham : Financial management is an area of financial decision- making, harmonizing individual motives and enterprise goals. Joshep and Massie : Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations. Thus, Financial Management is mainly concerned with the effective funds management in the business. In simple words, Financial Management as practiced by business firms can be called as Corporation Finance or Business Finance.