UNIT 1: What is Finance and how important it is in Business? Explain comprehensively.

Finance is the business activity which is concerned with the acquisition and conservation of
capital funds in meeting financial needs and overall objectives of business enterprises. It is
also a necessity for acquiring physical resources, which are very important and needed to
accomplish productive economic activities and for carrying business functionalism.
In my opinion, businesses run on money, and business finance guides you to make shrewd
and prudential decisions about cash flow and longer-term funding strategies. As you
develop skills and strategies for using the funds you have and for accessing additional capital
when needed, you’ll improve your company’s profitability and increase your potential for
leveraging new opportunities. Moreover, a financial plan for a business can help managers
determine if they can achieve the organization’s goal and strategic plans. If you are looking
to expand your business, you will use business finance to tell you how much you’ll have to
spend to get things moving.