Financial Management
Finance – An Introduction
Types of Finance
1. Business Finance
2. Direct Finance
3. Indirect Finance
4. Public Finance
5. Private Finance
6. Corporation Finance
Business Finance
The term 'business finance' is very comprehensive. It refers to the finances of business operations. The
term 'business' can be divided into three groups: commerce, industry and service. It is a process of
raising, disbursing and managing all cash to be used in connection with business operations.
It covers the finance of sole proprietorships, partnership firms and corporate organizations.
Undoubtedly, the above organizations have different characteristics and features and different
regulations and rules. The financial problems they face vary depending on the nature of the business
and the scale of operations. However, it should be remembered that the same principles of finance
apply to large and small organizations and to proprietary and non-proprietary organizations.
According to Guthmann & Dougall, business finance can be defined as the activity concerned with the
planning, raising, controlling and administration of funds used in business.
Business finance deals with the broad spectrum of financial activities of a business organization. It refers
to the mobilization and storage of funds and their appropriate utilization. Its scope includes commercial
finance, industrial finance, monopoly finance, corporation finance and agricultural finance.
The subject of business finance is much broader than corporation finance. However, since corporation
finance forms the lion's share of business activity, it is considered almost interchangeable with business
finance. Business finance covers detailed issues of promotion, growth and pattern of company, apart
from economic environment and strategies of financial planning. These issues of the corporate sector go
a long way in broadening the horizons of business finance.
The finance manager has to take on the new responsibility of managing the total funds committed to the
total assets and allocating funds to individual assets in line with the overall objectives of the business
enterprise.
Finance – An Introduction
Types of Finance
1. Business Finance
2. Direct Finance
3. Indirect Finance
4. Public Finance
5. Private Finance
6. Corporation Finance
Business Finance
The term 'business finance' is very comprehensive. It refers to the finances of business operations. The
term 'business' can be divided into three groups: commerce, industry and service. It is a process of
raising, disbursing and managing all cash to be used in connection with business operations.
It covers the finance of sole proprietorships, partnership firms and corporate organizations.
Undoubtedly, the above organizations have different characteristics and features and different
regulations and rules. The financial problems they face vary depending on the nature of the business
and the scale of operations. However, it should be remembered that the same principles of finance
apply to large and small organizations and to proprietary and non-proprietary organizations.
According to Guthmann & Dougall, business finance can be defined as the activity concerned with the
planning, raising, controlling and administration of funds used in business.
Business finance deals with the broad spectrum of financial activities of a business organization. It refers
to the mobilization and storage of funds and their appropriate utilization. Its scope includes commercial
finance, industrial finance, monopoly finance, corporation finance and agricultural finance.
The subject of business finance is much broader than corporation finance. However, since corporation
finance forms the lion's share of business activity, it is considered almost interchangeable with business
finance. Business finance covers detailed issues of promotion, growth and pattern of company, apart
from economic environment and strategies of financial planning. These issues of the corporate sector go
a long way in broadening the horizons of business finance.
The finance manager has to take on the new responsibility of managing the total funds committed to the
total assets and allocating funds to individual assets in line with the overall objectives of the business
enterprise.
