Thursday, March 8, 2012

whar is finance

finance

Financing is called a life blood of business because finance is prerequisite for mobilization real resources
and marketing activities.

Resources of Finance
There are two types of resources. Such as,
• Real resources (Land, building, machinery)
• Financial resources.

Depending on the nature of activities to be financed, business requires short term, medium term and long
term finances.
So, on the basis of time horizon, financing requirements of a business is categorized as in:
# Short Term
# Source of Finance Medium Term
# Long Term