What is business finance? Why do business need funds?
Answers
Answer:
When an entrepreneur takes a decision to start business the need of fund arises in order to meet the expenses of establishment of business, finance is required for purchasing fixed and current assets, for day-to-day operations, purchase of raw material, to pay salaries etc.
Business finances are funds or finances that are included or are collected for a particular business. Businesses need finances for their growth and all over development.
1. Finances are a term of management. It means studying finances, money and investments relating to a particular thing.
2. It deals with the question of how a particular company acquires its capital and how is that capital used
3. Companies need funds to
a. Increase working capital
b. Invest in purchasing assets
c. Starting a business and pushing its growth
d. Restructuring the debt if any taken
e. Business expansion
f. Replenishing stock and hiring more people