FINANCE – AN INTRODUCTION
Significance
Finance is the lifeblood of business. Before discussing the nature and scope of financial
management, the meaning of 'finance' needs to be explained. In fact, the term finance needs to be
clearly understood as it has different meaning and interpretation in different contexts. The timing
and extent of liquidity in any organization indicates the health of the concern. Every organization, be
it a company or institution, college, school, bank or university, needs finance to function on a day-to-
day basis.
Definition of Finance
According to F.W.Paish, Finance may be defined as the position of money at
the time it is wanted.
In the words of John J. Hampton, the term finance can be defined as the
management of the flows of money through an organization, whether it will
be a corporation, school, bank or government agency.
According to Howard and Upton, “finance may be defined as that
administrative area or set of administrative functions in an
organization which relates with the arrangement of each and credit
so that the organization may have the means to carry out the
objectives as satisfactorily as possible.
In the words of Bonneville and Dewey, Financing consists in the raising, providing, managing of
all the money, capital, or funds of any kind to be used in connection with the business.
As put forth by Hurband and Dockery in his book ‘Modern Corporation
Finance’, finance is defined as “an organism composed of a myriad of
separate enterprise, each working for its own ends but
simultaneously making a contribution to the system as a whole,
some force is necessary to bring about direction and co-ordination.
Something must direct the flow of economic activity and facilitate its
smooth operation. Finance is the agent that produces this result”.
The Encyclopedia Britannica defines finance as “the act of 5 providing the
means of payment.” It is thus the financial aspect of corporate planning
which may be described as the management of money.
An analysis of the aforesaid definition makes it clear that finance directs the flow of economic
activity and facilitates the smooth operation. Finance provides the required stimulus for
continued business operations of all categories. Finance is essential for expansion,
diversification, modernization, establishment, of new projects and so on. The financial policy of
any organization to a greater extent, determines not only its existence, and survival but also the
Significance
Finance is the lifeblood of business. Before discussing the nature and scope of financial
management, the meaning of 'finance' needs to be explained. In fact, the term finance needs to be
clearly understood as it has different meaning and interpretation in different contexts. The timing
and extent of liquidity in any organization indicates the health of the concern. Every organization, be
it a company or institution, college, school, bank or university, needs finance to function on a day-to-
day basis.
Definition of Finance
According to F.W.Paish, Finance may be defined as the position of money at
the time it is wanted.
In the words of John J. Hampton, the term finance can be defined as the
management of the flows of money through an organization, whether it will
be a corporation, school, bank or government agency.
According to Howard and Upton, “finance may be defined as that
administrative area or set of administrative functions in an
organization which relates with the arrangement of each and credit
so that the organization may have the means to carry out the
objectives as satisfactorily as possible.
In the words of Bonneville and Dewey, Financing consists in the raising, providing, managing of
all the money, capital, or funds of any kind to be used in connection with the business.
As put forth by Hurband and Dockery in his book ‘Modern Corporation
Finance’, finance is defined as “an organism composed of a myriad of
separate enterprise, each working for its own ends but
simultaneously making a contribution to the system as a whole,
some force is necessary to bring about direction and co-ordination.
Something must direct the flow of economic activity and facilitate its
smooth operation. Finance is the agent that produces this result”.
The Encyclopedia Britannica defines finance as “the act of 5 providing the
means of payment.” It is thus the financial aspect of corporate planning
which may be described as the management of money.
An analysis of the aforesaid definition makes it clear that finance directs the flow of economic
activity and facilitates the smooth operation. Finance provides the required stimulus for
continued business operations of all categories. Finance is essential for expansion,
diversification, modernization, establishment, of new projects and so on. The financial policy of
any organization to a greater extent, determines not only its existence, and survival but also the
