Business Finance means the funds and credit employed in the business. Finance is the foundation of a business. Finance requirements are to purchase assets, goods, raw materials and for the other flow of economic activities.
2. What do Finance departments do?
Recording all financial transactions
Preparing final accounts
Producing accounting information for managers
Forecasting cashflows
Making important financial decisions
3. Why Business Need Finance?
Starting up a business
Expansion of an existing business
Additional working capital
4.
5. Sources of Finance
INTERNAL FINANCE
It is obtained from within the
business itself
EXTERNAL FINANCE
It is obtained from sources outside
of and separate from the business.