İxtisas: Biznesin idarə edilməsi Kurs: 1 Qrup: 721 b fənn: İngilis dili Mövzu: finance müəllim: İsrafilova Çinarə

CONCLUSION

Finance is the soul and blood of any business and no firm can survive without finance. It concerns itself with the management of monetary affairs of the firm—how money can be raised on the best terms available and how the procured money can be devoted to the best uses. Hence the nature of finance relates to the process of arrangement and application of funds.

Moreover the supplier of funds earns some capital gain through sale of shares where the firm helps the shareholders get the gain by raising value of the business. If the fund is arranged through loan then an interest is paid to the supplier of the fund. So finance is always cost oriented.

It has a deep impact on the organization, society as well as the economy. The financing decision of a firm creates impact on investors, employees, debtors, creditors, government and all the members of an economy. Business activities are not mutually exclusive and so their dependence on each other is measured in terms of finance. Decisions relating to any activity influence others and in this way finance builds an interrelationship among business, society and economy.

Finance is all-pervasive. It is necessary for all types of organizations whether profit seeking or non-profit seeking. For profit seeking firm’s value maximization is the main goal while for non-profit seeking firms cost minimization and survival get prime importance. Both these goals are evaluated in financial terms. Firms, whether profit seeking or non-profit seeking, require financial support, because financial viability is the central theme of every firm.

References

1.Staff, Investopedia (2003-11-20). "Finance". Investopedia. Retrieved 2018.

2.Finance" Farlex Financial Dictionary. 2012

3.Publishing, Speedy 2015 Finance

4.Personal Finance - Definition, Overview, Guide to Financial Planning". Corporate Finance Institute. Retrieved 2020

5.Kenton, Will. "Personal Finance". Investopedia. Retrieved 2020.