Q:

Why is finance important to a business?

A:

Finance helps businesses achieve their goals by providing the funding they need to achieve them. Without funding, businesses cannot be successful.

Money helps businesses hire staff, produce product and rent facilities for office space. Most companies will seek financial support for an investor or equity partner. Without a financial backing, a business cannot exist.

It's important that leadership within an organization has a good understanding of finance. This will ensure that the business can effectively manage the money that they have to ensure that they hit budgetary targets and goals. In doing so, they have a better chance of succeeding at their mission and goals as an organization.

Sources:

  1. investopedia.com

Is this answer helpful?

Similar Questions

  • Q:

    What is the periodicity assumption?

    A:

    The periodicity assumption is an accounting guideline that allows an accountant to divide up the complex, ongoing activities of a business into set periods of time. The periodicity assumption is also known as the time period assumption.

    Full Answer >
    Filed Under:
  • Q:

    Why is accounting called the language of business?

    A:

    Accounting is the language of business because it helps people, both internal and external, to understand what is happening inside of s business. Just as language is universal to people, so is accounting in business. Regardless of where in the world a business is located, financial information is interpreted in the same way.

    Full Answer >
    Filed Under:
  • Q:

    What is the definition of "revenue allocation"?

    A:

    Revenue allocation is the distribution or division of total income, or revenue, in a business, corporate or government structure. It involves a complex process that entails how and where to allocate revenues in order to ensure the viability of departments and maintain the operating structure of the organization.

    Full Answer >
    Filed Under:
  • Q:

    What is key account management?

    A:

    Key account management refers to the coordination of sales, marketing and planning efforts between a business and its most important clients. The primary objective of key account management is to gain a thorough understanding of the needs of the company's most significant clients.

    Full Answer >
    Filed Under:

Explore