FINANCE: Finance is defined as the provision of money at the time when it is required. Any kind of business can be big, small and medium, need for finance is the first thing which is helpful to complete company`s operations and the targets.finance is rightly said to be the lifeblood of an enterprise. Without finance, no one company can start its work and could not achieve its targets and goals.
FINANCE IS CLASSIFIED INTO TWO CLASSES:
- Public Finance
- private Finance
PUBLIC FINANCE: Public finance deals with the requirements, receipts of funds in government institutions like state, self-govt, and central government. It concerned with any business organization and a non-profit organization.
PRIVATE FINANCE: Private Finance or Personal finance deals with the analysis of principles and practices involved in managing own daily need of funds. the finance of non-profit organization is concerned with the practices, process in all kind of organizations like charity.
BUSINESS FINANCE: In short words, is composed of two words;
Business and finance
BUSINESS means the state of being busy. All creative human activities and production of goods that satisfying the human needs are known as business. In wide range concept, business includes industries, trade, and commerce.
FINANCE can be defined as the provision of money when it requires.
Approaches to Finance:
1.the approach views finance as to providing funds when its needs.
2.This approach related to finance to cash,
3. that approach related to finance as being raising of funds and effective utilization.
FINANCIAL MANAGEMENT OR CORPORATION FINANCE: This finance is the process of raising, providing of all money or funds that are used in an enterprise.
According to Wheeler,“That business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of the business enterprise.”
Financial Management refers to the financial activity which is concerned with the planning and controlling of firm`s financial resource. As a separate managerial activity, it has a recent origin