Finance helps to establish the business

Finance plays a key role in business; it’s a hard true in business world. In human life as blood circulation is necessary for life, in business finance is very necessary to run the business smoothly. It has been correctly termed business lubricants that keep the venture lively. Any business can not started either it is big, small or medium without sufficient amount of finance. From the beginning i.e. conceiving an idea to business, finance is needed to help or establish the business, obtain the fixed resources, make investigations as market survey, enlarge the product, keeping the men and appliances at work. Even an existing concern may require finance for improvement or expanding the business. Thus the finance plays a key role in business. Any business can not establish in absence of finance, finance helps to stand and establish the business when it is started. Finance a part of business which relates to all cash management matters. It helps to the business as intact and is consistent with all other trade functions.

The function of finance includes tax, funds, risk management which will give to the achievement of planned objectives and goals of the company.

The financial importance is found because of the fact that today’s business tricks are mostly carried on company or shared form of organizations. The introduction of corporate venture interested in:
• Increase the volume and power of the business venture
• Large distribution of corporate ownership
• Separation of ownership and organizations.

All the mention factors have increased the importance of corporate finance. As the owners in a business enterprise are broadly scattered and the management is separated from the ownership, the management has to ensure the maximization of owner’s economic welfare. The achievement and development of a firm is only possible by maximization of principles and procedures as put down by corporation finance.

The information of the control of corporation finance is important not only to the working manager but also for the others who deal with a corporate enterprise, like as investors, lenders, bankers, creditors, as there is always a scope for the organizations to manipulate the financial announcement.
In the present day capitalistic rule, the size of the business enterprises is increasing resulting into corporate empires empowered with a lot of social and political power.
This makes corporate finance more important.