Business Functions II
Finance: Represents long and short term requirements and requires optimal management of limited resources. Business finance: those business activities concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprises. Financial Managment: Task of providing funds needed by the business or enterprise on terms that are most favorable in the light of its objectives – almost exclusively concerned with procurement of funds, could include instruments, institutions and practices of fund raising; also includes legal and accounting relationship between a company and its sources of funds. - Concerned with cash – everything that takes place in the conduct of a business (Broader term) - Procurement of funds and effective utilization – widest accepted theory Classification: Financing decision Investment decision Fixed capital management Working capital management Dividend dec...