What are the characteristics of business finance ?

Solution

Business finance has following characteristics:

1. Business activities are not possible without finance. Financing is an essential business activity.

2. All business enterprises whether large or small need finance.

3. Small sized business enterprises need lesser funds, whereas large sized business houses need more funds.

4. Business finance includes borrowed funds and owned capital.

5. Business finance is a wider term. It is concerned with planning, acquiring, utilizing and managing funds.

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