Selasa, 25 Mei 2010

Why Finance?

One of the primary considerations when going into business is money.Without sufficient funds a company cannot begin operations.The money needed to start and continue operating a businees is knows as capital.Anew business needs capital not only for ongoing expenses but also for purchasing necessary assets.These assets-inventories,equipment,building,and property represent an investment of capital in the new business.
How this new company abtains and uses money will,in large measure,determine its success.The process of managing this acquired capital is knows as financial management.In general finances securing and utilizing capital to start up,operate,and expand a company
To start up or begin business,a company needs funds to purchase essential assets,support research and development, and buy materials for production. Capital is also needed for salaries , credit extension to customers, advertising, insurarance, and many other day-to-day operations. In addition, financing is essential for growth and expansion of a company. Because of competition in the market,capital needs to be invested in developing new product lines and production technigues and in acquiring assets for future expansion.

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