What Are The Concepts And Functions Of Business Finance?

Concept and function of finance

The financial managment or finance as is traditionally spoken, has three basic core areas of control namely;
1) to finance their operations of the entity
2) shareholder's wealth creation or value creation
3) debt and equity structure of the firm

Business finance is the finance or money that is available to businesses to perform their commercial functions. This financing can be in the form of a short or long term loan or even issuing equity that is shares. Business finance includes the techniques that can be used by companies to acquire the funds and then manage a certain required balance between capital generated from loans and that from equity. It provides you with various techniques to analyze the health of the company that whether it will be able to generate necessary capital. The purpose of business finance is therefore to deal with all the matters related to generating, maintaining, evaluating, and repaying the financing for commercial uses in a company.

Functions of a business finance