Finance is the life blood of the industry. Elucidate this statement with suitable examples.

Question:

Finance is the life blood of the industry. Elucidate this statement with suitable examples.

Finance:

Finance refers to the practice of money management from acquisition to the utilization of funds. The finance flow is mandatory for every business, whether it profitable or not for profit organization for achieving the desired end results.

Answer and Explanation:

The finance is deemed as the lifeblood for any business because the single activity of a company is dependent upon finance. The operations are carried through the adequate acquisition of capital from the right sources. The production, distribution and transportation of goods all are possible when the firm has an arrangement of funds. The payrolls, advertisement and other expense associated with a business are settled through finance. For instance, a company orders a particular quantity of raw material for producing final goods then initially the amount is paid to the supplier for before acquiring raw material.


Learn more about this topic:

Loading...
What Is Financing? - Definition & Types

from Corporate Finance: Help & Review

Chapter 8 / Lesson 7
115K

Related to this Question

Explore our homework questions and answers library