close relationship between finance function or other business function
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Answer:
Establishment
First, financing relates to other business functions through its role in establishment. Without financing, the business most likely would not exist, to say nothing of other business functions. Financing is what enables the purchase of the equipment, the leasing of the property, the buying of materials, employee’s salaries, marketing, etc.
Production in Anticipation of Demand
Financing enables production in anticipation of demand. This is a necessary aspect of many businesses. For example, a store has products on its shelves, not merely a storefront with catalogs. Likewise, a carpenter does not wait until he gets a project to buy his tools.
Promotion
Financing also enables promotion. The promotion of a business is an expensive venture, in some cases costing just as much as the cost of goods sold or staffing. Financing is required to fund promotion. A business will not get many customers if it does not advertise its presence, its product/service offerings and its value proposition (e.g. low price, great value, special features).
Growth
Financing also plays a role in the growth of a company. Without having advance orders and payment, growth would not be a possibility without financing. In most cases, company growth is preceded by an investment in more employees, more inventory, another location, etc.
Contingencies
Adequate financing also ensures that the company will be able to handle any contingencies that arise. A contingency is any sort of unexpected expense. As such, examples range from busted pipes to an ordering mistake that requires rush delivery to amend, or to hiring a temporary worker to cover someone who has an extended leave from the job. Anything can happen, but without financing the company would not be able to afford it.
Opportunities
Lastly, financing enables opportunities, which can arise at any time. Without financing, a company cannot take advantage of those opportunities. For example, if the company’s primary supplier of widgets is going out of business and liquidating its stock, if the company had access to financing, it would be able to purchase the widgets it needs at a substantially reduced cost, increasing its profit margin.