Concept of Finance and its function

 Today is 21 st century. It is the age of globalized economy. In this age finance plays an important role in every activity of business. 

Definition-

The process of arranging, utilizing, expending and investing money by proper way is called finance. 

In other words we can say that the process of optimum utilization of money to fulfill our need, desire, demand and expectation this process is called finance. 

Nature-

1. It is economic activity. 

2. It is a universal aspects. 

3. It is a formal activity. 

4. It is a legal activity. 

5. It is a positive approach. 

6. It is a progressive approach. 

7. It is future oriented activity. 

8. It is a goal oriented approach. 

9. It is a purposeful activity. 

10. It is dynamic or flexible activity. 

Function- 

The function of finance is very important in this globalized economy age. The main important function is as below-

1. It fulfills the need, desire, demand and expectation of customer. 

2. It increases the living standard of common man. 

3. It makes the function of business effective and efficient. 

4. It helps organization to survive, grow and develop. 

5. It supports government to implement rules and regulation inside the country. 

6. It helps to develop infrastructure inside the country. 

7. It helps to maximize production. 

8. It helps to forecast appropriate demand of customer and consumer. 

9. It helps to supply product or service at every corner of the world. 

10. It helps to decide appropriate price of products or service. 

11. It helps to advertise at proper way. 

12. It helps to store product and maintain its feature. 

13. It helps to distribute product among distribution channels by an effective way. 

14. It helps to export product and service in global market. 

15. It helps to make global planning, organising, staffing, directing and controlling.