In the words of Prather and Wert, “Business finance deals primarily with raising, administering and disbursing funds by privately owned business units operating in non-financial fields of industry.”Īccording to the Encyclopedia of Social Sciences, “Corporation finance deals with the financial problems of corporate enterprises. Wheeler defines business finance as, “That business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprise.”Īccording to Guthmann and Dougall, “Business finance can be broadly defined as the activity concerned with the planning, raising, controlling and administering the funds used in the business”. Definition of Financial Management :Ĭorporation finance or broadly speaking business finance can be defined as the process of rising, providing and administering of all money/funds to be used in a corporate (business) enterprise. The assets of the corporation are owned by it rather than its members and a corporation’s liabilities are the obligations of the corporation, not the owners or the members. A corporation is regarded as something different from its owners.
Being a mere creation of law, it possesses only the properties which the charter of its creation confers upon it either expressly or as incidental to its very existence”.Ĭorporation is a legal entity having limited liability, perpetual succession and a common seal. In the words of Chief Justice Marshall, “a corporation is an artificial being, invisible, intangible and existing only in contemplation of the law.
A joint stock company or a corporation is an association of many persons who contribute money or money’s worth to a common stock and employs it in some trade or business and who share profit and loss arising there from.
The liability of the partners is unlimited and they collectively share the risks of the business. It may come into existence either as a result of the expansion of sole-trade business or by an agreement between two or more persons. A partnership, on the other hand, is an association of two or more persons to carry on as co-owners of a business and to share its profits and losses.
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