1.What is Finance? / Define Finance. Finance come from latin word `Finis' means collection and disbursement of money.

In a narrow sense finance means the collection of money or collection of fund. In a brief sense the overall activities related to a planning organizing, raising, conservation, using and controlling of funds is known as finance. Money and finance are two different words. It may simply be defined as those act ivities which are involved in seeing that an individual or organization has the cash with which to pay its bills promptly. It is the life blood of and organizat ion. But different writers define finance in different ways which are as follows : In words of George R. Terry, Finance consists of providing and utilizing the mone y, capital right, credit and funds of any firm which are employed in operation o f an enterprise. The Encyclopedia Britannica conveys the idea of finance in the following words, Finance is the act of providing the means of payment. According to Howand and Upton, Finance is those activities of an organization aim s at maintaining solvency by successfully achieving goal at performing activitie s at paying debt in time. According to Scholl and Halley, Matters, policies and principles relevant to col lecting money and incidental function. According to E.W.Walker, Activities of business relevant to planning , controlli ng and their application are called finance. According to L.J.Gitman, Finance can be defined as the art and science of managi ng money. From this above discussion it is obvious that finance includes all the financial activities in business organization which manage its cash flow to maintain its objectives most efficiently. What do you mean by Business Finance? Business organization means commercial and industrial undertaking and th eir direct services. Business Finance means finance required for promoting and r unning trade, commerce or industrial undertakings. It broadly refers to those ac tivities involved in seeing that a manufacturing enterprise or business organiza tion has the cash with which to meet it's pay bills, to purchase raw materials, to construct buildings, to equip plant with machinery and to provide many services promptly. The saving, spending, borrowing and investing of funds are included in the meani ng of business finance. Business finance also means rising, providing and managi ng of all money, capital or funds any kind to be used in a business. According to Wheeler, Business Finance is that activity which is concerned acquis ition and conservation of capital funds in meeting financial needs and objective s of a business enterprise. Business Finance thus refers to the funds that are required for floating, runnin g and conducting the affairs of a business organization. How will you define Financial Management? Financial management is that administrative area or set of administrative functi on which relates to the arrangement of cash and credit, so that the organization may have the means to carry out it's objective as satisfactory as possible. According to Salmon, Financial management is concerned with the efficient use of an economic resource, namely capital fund.

According to James C Vanhorn, Financial management is concerned with the acquisit ion, financing, and management of assets with some over all goal in mind. Thus t he decision function of financial management can be broken three major areas: th e investment decision, and financing decision, and asset management decisions. According to Weston and Brigham, Financial management is an area of financial dec ision making , harmonizing individual motives and enterprise goals. Archer and Ambrosia, Financial management is the application of the planning and control function to the financial function. From this above discussion we can find the following figure: Financial Management : Anticipating Financial needs Acquiring financial recourses Allocating funds in business Administrating the allocation of funds Analyzing the performance of funds Accounting and reporting to management At last we can say that, financial management is that managerial activity which is concerned with the planning and controlling of the firm's financial resources. It is also concerned with level of liabilities such as accounts payable, long te rm debt, taxes etc.