Business Finance

Business finance is a branch of finance. The study related to the process and theories of acquiring and utilizing resources of the businesses is known as business finance. Business finance is also referred to as managerial finance, corporate or corporation finance and company finance. The theories of business finance are applicable to both small and large scale businesses. But since in modern time most of the businesses are of large size corporations, business finance is found to concentrate on the policies and theories of these corporations. Hence in this site, the terms business firm, firm,company have been used synonymously.

The general definition of finance is also applicable in case of business finance. The only difference is that the definition of business finance is related to firm or business of corporation.

In conclusion, finance is a subject related to the study of acquiring, managing and efficiently utilising the funds for businesses. It studies the facts and policies related to finance. The study of facts denotes the study of the existing and prevalent producers of financial administration and management. On the other hand, policy denotes the formulation of theories which guides in making sound financial decisions.

Since business finance is a branch of finance in general, it is also both art and science. It is an art related to when, how, how much of economic resources should be raised for the smooth operation of business. On the other hand, it is a science of how to predict the financial quantities. It is a science that prepares the strategy to achieve the desired objective by collecting analyzing the financial facts.