nature and scope of business finance

An individual , business firm and government organization do need to implement a number of programs to attain their goals. implementing programs require resources such as natural resources,human resource  and financial resource . effectiveness in the management of financial resource is  key to optimize the use of natural and human resource.in the case of an individual,management of financial resource(funds)is called by personal finance.the same is called by public finance in government organizations. business finance is frequently used to refer to the same thing,i.e. management of funds in the context of a  business firm.thus,broadly,finance as a discipline is categorized in to three domains,public ,finance,business finance and  personal finance.public finance is the management of funds for government.both local government.both local government units and central government .traditionally ,it deals with the management of revenue and expenditure of government personal finance refers to the management of funds of an individual.since public finance and personal finance are beyond the scope of this book,only business finance will be discussed at length.

     Nowadays, business finance,corporate finance,financial management,and managerial finance are used as synonym of each other.at the early stage of the  development of finance as a separate discipline,academics and practitioners used business finance.and latter on . they used corporate finance of business finance.the rational behind the  use of corporate finance was the dominance of corporate from of  business organization in the business world.traditionally,business finance used to focus only on the procurement of funds required to set up a corporation(company) and expansion of its activities.accordingly,the responsibility of financial manager was limited only to estimate the financial requirements of a corporation and raise the funds to meet the projected financial requirement  of a corporation.