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InterviewSolution
| 1. |
Why business finance is known as life of blood |
| Answer» As\xa0blood\xa0is important for body of living beings, similarly\xa0finance\xa0is important forbusiness\xa0to survive. Meet its day-to-day required i.e. for purchasing assets short-term and long-term, for its working capital etc.Thus, it is\xa0known as life blood\xa0of the\xa0business.<br>Business Finance is the life blood of an organization because it is the money which is required to start, daily operations, upgradation and expansion of business. It involves identifying the source of business finance (Debts {Temp. Capital} or Equity {Permanent Capital}) at minimum cost and taking investment decisions (Fixed Capital {Long Term} & Working Capital {Day to day operations}) with minimum risk and highest returns (profits). | |