InvestorQ : what is the objectives of business finance
nisha made post

what is the objectives of business finance

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Mary Joseph answered.
4 months ago


Business Finance is one of the categories of a business skill that involves managing the money of one’s business. Managing money includes investing, borrowing, lending, saving, spending, etc. The objectives of business finance include:

Revenue Generation: The most important reason for which any business is carried on is revenue. All that difficulty in business, putting money in it is only with a reason to generate more money out of it.

Managing Operational activities: Operations can be considered as one of the most important objectives of business finance to keep the business running. Without operation objectives being met, the chances of revenue generation are reduced.

Productivity and Efficiency: Maximizing performance and performance of the employees drive revenue for the organization. Therefore, it is important to manage business finance.

Return on Capital Investment: Any finance is put into any business with a motive to get some return on their basic investment. Business owners want to be sure that the assets of the organization generate revenue that is enough to justify the cost associated with it.

Contingency Funds: While it is important to manage the finances of a business, it is also important to create funds that could provide for emergency situations. While we want profit from the business, we also want protection.