2 Most VSAQ’s of Business Finance Chapter in Inter 1st Year Commerce (TS/AP)

2 Marks

VSAQ-1 : Business Finance. (OR) What is Business finance?

Business finance refers to the funds necessary to support various activities within a business. It plays a crucial role in the success of a business, as sufficient funds are essential for its operations. Finance is often considered the lifeblood of a company, as it is used to facilitate and manage business operations effectively and efficiently.

According to Howard and Upton, business finance involves a series of administrative functions in an organization related to the arrangement of cash and credit. These functions are essential to ensure that the organization has the means to achieve its objectives in the most satisfactory manner possible.

VSAQ-2 : Working capital. (OR) What is working capital? (OR) What is meant by working capital? (OR) Define Working capital.

Working capital represents the financial resources required to manage the daily operations of a business. It is often referred to as the “lifeblood” of a business because it enables a company to carry out its routine activities smoothly. Working capital is essential for various purposes within a business, such as purchasing raw materials, covering employee wages, and meeting day-to-day expenses. It ensures that a company can operate efficiently and sustain its operations over time.