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What is Finance? By Assignments4u.com
Finance Needs of Finance? • Need for managerial Business. • Need to Run a business. • Need for input Operations. Definition: “Finance is concerned with decision about money or more appropriately cash flows.”–Scott and Brigham
Approaches of Finance • Traditional Approach • Mordern Approach
Traditional approach: • According to this approach, the scope of the finance function is restricted to “procurement of fund by corporate enterprise to need their financial needs. • The term ‘procurement’ refers to raising of fund externally as well as the inter-related aspects of raising funds.
Mordern Approach • According to mordern approach the term finance provides a conceptual and analytical framework for financial decision-making. That means, the finance function covers both acquisition of funds as well as their allocation. • The new approach views the term finance in a broader sense. It is viewed as an integral part of over-all management.
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