Finance Is the Oil of Wheel, Marrow of Bones and Spirit of Trade, Commerce and Industry - An Analytical Elucidation
Finance is to business what blood is to the human body. This it is the lifeblood of business. Fortunately for the human body there is an automatic regulation of the quantity and quality of blood required. No such auto control is available in the case of a business firm. Hence the necessity to manage „finance‟ so that the firm may have at its disposal adequate funds of various types but at the same time avoiding idleness of funds. There was a time when it was thought that financial management consisted merely providing funds required by the various departments of divisions of the firm. This has now changed completely and it is accepted that proper financial management consists of a dynamic approach towards the achievement of firm‟s objectives. In general, finance may be defined as the provision of money at the time it is wanted. However, as a management function it has a special meaning. Finance function may be defined as the procurement of funds and their effective utilisation.