Inventories and attempt make the business

Finance (or financial management), like accounting, exists to help decision makers. It is concerned with the ways in which funds for a business are raised and invested. This lies at the very heart of what a business is about. In essence, a business exists to raise funds from investors (owners and lenders) and then to use those funds to make investments (equipment, premises, inventories and so on) in an attempt to make the business, and its owners, wealthier. It is important that funds are raised in a way that is appropriate to the particular needs of the business, and an understanding of finance should help in identifying:

1. the main forms of finance available;

1. the returns from an investment; and

2. the risks associated with an investment.

4. System of internal controls: Finance is concerned with internal controls maintained in the organization or workplace.

5. Future decision making: Finance is concerned with the future decision of the organization. It is an indicator of growth and good returns.

3. Borrowed funds (loans, debentures, overdrafts, etc.).

At the same time, Finance also encompasses wider perspective of managing the business generated assets and other valuables more efficiently.