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Finance is universally considered as the life & soul of business, trade, commerce and industry.

Finance is highly cardinal part of a business, essential for a business organization, and very vital for execution of business plans.

The activities of employees, workers, officers, traders and industrialists are moulded by the financial factors. Maintaining a proper amount of finance is a key to success. The better a company manages its finance structure, the less the company needs to borrow.

No economics activity can be carried out without required finance. It is common sense that for commencing and running any business, there is need to mobilize funds. These funds are required for diversity of functions; for plant and machinery; for wages and salaries; for lands and buildings; for insurance and taxes; and for all kinds of trade expenses.

Finance can be defined as, “The money needed by an individual or company to pay for something, for example, a project or stocks.”

The importance of finance has arisen enormously these days because of the acceptance of capital-intensive techniques, large-scale production and troubles in raising finance.

Each and every type of business requires finance to start their functionings. Only procurement of capital is not enough, it is equally essential to utilize it in the best possible manner. Finance has aptly been called ‘the science of money.’

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