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BY
S.BERYL STEFFIN
PRK23MS1017
Finance is defined as the provision of money at the time it is needed.
Finance function may be defined as the procurement of funds and their
effective utilization.
TWO TYPES FINANCIAL REQUIREMENTS OF BUSINESS
SHORT TERM FINANCIAL REQUIREMENTS
LONG TERM FINANCIAL REQUIREMENTS
INTRODUCTION:
Short term funds required for meeting working capital needs. They are usually required
for a period up to one year. The requirement of these funds is usually met by taking short
term loans or getting the bill discounted from the commercial banks.
LONG TERM FINANCIAL REQUIREMENTS:
long term funds required to a great extend for meeting the fixed capital requirements of
the business. They are required for a period exceeding one year. These funds are raised by
business by business from sources which provide, in an uninterrupted way, the use of
fund for a long period, viz., shares, debentures, loans from specialized financial
institution.
SHORT TERM FINANCIAL REQUIREMENTS:
COST OF CAPITAL IN THE BUSINESS WORLD IN
COST OF CAPITAL IN THE BUSINESS WORLD IN
COST OF CAPITAL IN THE BUSINESS WORLD IN
COST OF CAPITAL IN THE BUSINESS WORLD IN

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COST OF CAPITAL IN THE BUSINESS WORLD IN

  • 2. Finance is defined as the provision of money at the time it is needed. Finance function may be defined as the procurement of funds and their effective utilization. TWO TYPES FINANCIAL REQUIREMENTS OF BUSINESS SHORT TERM FINANCIAL REQUIREMENTS LONG TERM FINANCIAL REQUIREMENTS INTRODUCTION:
  • 3. Short term funds required for meeting working capital needs. They are usually required for a period up to one year. The requirement of these funds is usually met by taking short term loans or getting the bill discounted from the commercial banks. LONG TERM FINANCIAL REQUIREMENTS: long term funds required to a great extend for meeting the fixed capital requirements of the business. They are required for a period exceeding one year. These funds are raised by business by business from sources which provide, in an uninterrupted way, the use of fund for a long period, viz., shares, debentures, loans from specialized financial institution. SHORT TERM FINANCIAL REQUIREMENTS: