Meaning of Finance
Finance may be defined as the provision of money at the time when it is required. Financerefers to management of flows of money through an organization. It concerns with theapplication of skills in the manipulation, use and control of money. Different authorities have
interpreted the term „Finance‟ differently. However, there are three main approaches to
The first approach views finance to providing of funds needed by a business onmost suitable terms. This approach confines finance to the raising of funds and tothe study of financial institutions and instruments from where funds can beprocured.2)
The second approach relates to finance cash requirements.3)
The third approach views finance as being concerned with raising of funds andtheir effective utilization.
Definition of Finance
According to Guthmann and Dougall, Business finance can be broadly difined as the activityconcerned with the planning, raising, controlling, and administering the funds used inbusiness.
In the words of panther and wert, “Business finance deals primarily with raising,
administering and disbursing funds by privately owned business units operation in
nonfinancial fields of Industry”.
ording to the encyclopedia of social Sciences, “Corporation finance deals with the
financial problems of corporate enterprises. These problems include the financial aspects