Question

‘Finance is the elixir for any business’. Justify the given statement.

Answer 1

1. Finance assists in the formation of new businesses and allows businesses to take advantage of opportunities to grow and expand.
2. A business needs funds to:
   1. Promote or establish the business
   2. Acquire fixed assets
   3. Make market investigations
   4. Develop products
   5. Keep men and machines at work
   6. Encourage management to make progress and create value.
   7. Expand, diversify, improve, and grow. 
3. The significance of finance in an enterprise is like a lubricant to the process of production. Finance is the elixir for any business as nothing happens without money.