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Business Finance: An Overview Video Lecture | Business Studies (BST) Class 12 - Commerce

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FAQs on Business Finance: An Overview Video Lecture - Business Studies (BST) Class 12 - Commerce

1. What is business finance?
Ans. Business finance refers to the management of money and financial resources within a business or organization. It involves making financial decisions, such as investments, budgeting, and managing cash flow, to ensure the financial health and growth of the business.
2. Why is business finance important?
Ans. Business finance is important because it helps in making informed financial decisions that can impact the success and profitability of a business. It provides the necessary funds for operations, expansion, and investment, and helps in managing risks and maximizing returns.
3. What are the key components of business finance?
Ans. The key components of business finance include financial planning, budgeting, financial analysis, investment decisions, funding sources, and risk management. These components work together to ensure the efficient use of financial resources and the achievement of business objectives.
4. How does business finance impact decision-making in a company?
Ans. Business finance plays a crucial role in decision-making within a company. It provides financial information and analysis that helps in evaluating the feasibility and profitability of various options. Whether it's deciding on new investments, cost-cutting measures, or expansion plans, business finance provides the necessary insights to make informed decisions.
5. What are the common sources of business finance?
Ans. Common sources of business finance include equity financing (issuing shares), debt financing (borrowing money), retained earnings (profits reinvested in the business), bank loans, venture capital, and crowdfunding. The choice of funding source depends on factors such as the nature of the business, its financial position, and the purpose for which funds are required.
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