What Is Finance?

Finance is a blood of business. It flows in mostly from sale of goods and services. It flows out for group various types of expenditures. These are activating elements in any business which may be an industrial or commercial undertaking surrounded by finance.  Business finance is defined as business activity which is concerned beside the acquisition and conservation of capital funds in engagement the financial needs and overall objectives of business enterprise.  Business finance is mainly developed around three crucial objectives. First of all its objective can be to obtain an passable supply of capital for the needs of the business. Second is to conserve and increase the capital through better paperwork.

Third is to make profit from the use of funds which is an overall objective of a business enterprise. Before the advent of the industrial revolution finance be not of much importance. The methods of production were very simple. For example the artisan used to work within the open or in a small hut. He had simple tools mostly made by himself. labor at that time be more important than capital and finance did not pose any problem. Since the outset of the industrial revolution there has been a remarkable growth within production.

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