Finance refers to money resources, income, capital, loans, and retained earning. It also refers to managing fund, capital, money, revenue and cash. In broader terms it includes economics, accounting, banking, commerce, investment and business because they are all concerned with money.
Finance is the life blood of any business organization. Financial needs can be from capital(owners equity), loans, and retained earnings. which are accumulated profits over the previous years. The success of financial aspects of business depends on the following.
a. Best possible proportion of capital, loans and retained earnings invested in the business.
b. Proper utilization of financial resources.
c. Effect financial management.
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