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Why business finance is known as life of blood

Posted by Khushi Pandya 3 years, 9 months ago

CBSE > Class 11 > Business Studies

2 answers

Vaidehi Hammed 3 years, 8 months ago

As blood is important for body of living beings, similarly finance is important forbusiness to survive. Meet its day-to-day required i.e. for purchasing assets short-term and long-term, for its working capital etc.Thus, it is known as life blood of the business.

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Udayraj Joshi 3 years, 8 months ago

Business Finance is the life blood of an organization because it is the money which is required to start, daily operations, upgradation and expansion of business. It involves identifying the source of business finance (Debts {Temp. Capital} or Equity {Permanent Capital}) at minimum cost and taking investment decisions (Fixed Capital {Long Term} & Working Capital {Day to day operations}) with minimum risk and highest returns (profits).

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