Wanted to know about finance function?
Hello guys welcome to my channel simple thoughts today let us discuss about finance function its meaning types and nature let us know about finance function finance is defined as the provision of money at the time when it is required here comes a tote what is meant by provision of money the amount that is set aside for any uncertain uses our economic obligation of
An organization is known as provision of money each and every enterprise whether big medium or small needs finance to carry on its operations and to achieve its targets from this we can analyze the important of finance in an organization now we will discuss about meaning of finance the finance may be defined as the art and science of managing money it includes
Financial services and financial instruments financial services include banking and insurance services financial instruments means monetary contract between two parties types of finance finance is one of the important and integral part of business concern hence it play a major role in every part of the business activities as an integral part it coordinates each
And everything in an organization finance can be classified into two types private finance and public finance private finance includes individual finance partnership finance business or corporate finance public finance includes central finance state finance semi government finance nature of finance function the finance function is the process of acquiring and
Utilizing funds of a business the following or some points related to the nature of finance first nature in most of the organization finance operations are centralized it means that all the activities of finance are under the control of a single person second one finance functions are performed in all business firms irrespective of their sizes or legal forms it
Means finance functions does not depend upon sizes or nature of the organization or business entities third one they contribute to the survival and growth of the form it means each and every organization require finance to increase and expansion of their businesses fourth point finance function is primarily involved with data analysis for decision-making finance
Functions are concerned with the basic business activities of a firm in addition to the external environmental factors which affect basic business activities namely production and marketing we all think that finance activities are mainly related to the money or monetary activities of a firm but they are also involved with production and marketing activities in
Production activities finance analyze how much raw materials have to be purchased and how many pools have to be produced etc in marketing it helps in the advertising and promoting the goods and services sixth nation finance function comprise control functions means finance function controls each and every part of the business organization seventh the central focus
Of the finance function is evaluation of the firm this is the important nature of the finance function because high valuation of the form increases the organization’s popularity in the market hands increases the business and expansion of the organization is possible thank you all for watching my video have a nice day
Transcribed from video
Finance function. Its meaning, types and nature. By Simple Thoughts
