Business Finance.
  Definition:
  Guthmann and Douglas- 
  “Business finance can be broadly defined as the 
   activity concerned with planning, raising, 
   controlling and administering the funds used in 
   the business”.
  In short it is a process of raising, providing and 
   managing of all the money to be used in 
   connection with business activities.
    Finance Function (Modern Approach)
      Financing
      Financing
      Decision
      Decision
                        RISK
                                      MARKET VALUE OF 
                                       MARKET VALUE OF 
      Investment                       SHARE HOLDERS 
                                        SHARE HOLDERS 
       decision                          WEALTH
                                          WEALTH
                        RETURN
      Dividend
      Dividend
      Decision
      Decision
                 Production
                            Materials
         H.R.M
                   Finance    Marketing
                  Function
            M.I.S
                         R & D
           Finance is the heart function of an organisation.
                           ORGANISATION OF FINANCE FUNCTION
                          SHAREHOLDERS
                          SHAREHOLDERS
                           B.O.D
                           B.O.D
                           M.D./CHAIRMAN
                           M.D./CHAIRMAN
 PRODUCTION 
 PRODUCTION              FINANCE
              MARKETING  FINANCE
   MANAGER    MARKETING                HR 
   MANAGER                             HR        R & D
                        MANAGER                  R & D    SYSTEMS
               MANAGER  MANAGER                           SYSTEMS
               MANAGER              MANAGER
                                    MANAGER                 /M.I.S
                                                            /M.I.S
         TREASURER/                  CONTROLLER
          TREASURER/
     COMPANY SECRETARY                CONTROLLER
      COMPANY SECRETARY
                                        Financial Accounting, 
      Provision of Finance,          Management and Cost A/c,  
  Banking & Custody, Investor     Internal Audit, Tax Administration, 
    relationship, Short term      Budgeting and Control, Economic 
  Finance, Cash Management,                  Appraisal.
     Credit administration, 
    Investments, Insurance. 
             FINANCE AND OTHER RELATED DISCIPLINES.
                                   PRIMARY 
     FINANCIAL                     DISCIPLINE:
     DECISION                      1. Accounting.
     AREAS:                        2. Micro 
     1. Investment                    Economics.
        analysis.                  3. Macro 
     2. Working                       Economics.
        Capital 
        Management.
     3. Sources &                   SECONDARY 
        Cost of funds.              DISCIPLINE:
     4. Capital                     1. Marketing
        Structure.                  2. Production
     5. Dividend                    3. Quantitative 
        Analysis of                    Methods.
        risk and 
        return.