Finance is considered to be the foundation of basic activities of any business. Particularly in production and marketing activities, finance functions in the same way as oil functions in the operation of machines or blood functions in the human body. In the absence of finance, nobody can imagine either of setting up a business or its operations and development.
The term finance is derived from the Latin word ‘finis’ which means end/finish. Finance can also be interpreted in many ways such as fund, money, investment, capital, amount etc. Finance act as a medium for business which involves the acquisition and usage of funds in various departments such as production department, purchase department, research and development etc.
Finance also refers to the science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems, which include public, private and government bodies and the study of finance and financial instruments, which can relate to countless assets and liabilities.
