In one word definition of finance is the art and science of managing money. Virtually all individuals and organizations earn or raise and spend or invest money.
Finance is concerned with the processes, institutions, l markets, and instruments involved in the transfer of money between individuals, businesses, and governments.
Financial management is concerned with the acquisition, finance, and management of assets with some overall goals in mind.
Definition of finance
According to B.O. Wheeler, “Business finance is that activates which is concerned with the acquisition and conservation of capital funds in meeting the financial need and overall objective of business enterprise.”
According to Dr. R.E. Gloss & Dr. H. Baker, “Business finance is concerned with the sources of funds available to enterprise of all sizes and the proper use of money or credit obtained room such sources”
Some other opinions regarding finance are mentioned below:
Simon Andrade, defines the term finances in the following ways: “Area of economic activity in which money is the basis of the various embodiments, whether stock market investments, real estate, industrial, construction, agricultural development, so on. “,
And
“Area of the economy in which we study the performance of capital markets and supply and price of financial assets”
According to Bodie and Merton finance is “study how scarce resources are allocated over time”.
O. Ferrel C. and Geoffrey Hirt The term finance refers to “all activities related to obtaining money and effective use”
At last, we can say that study of money within the firm; a business function responsible for finding funds, managing them, and determining their best use in business finance.
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