Vol. 3, Issue 5, Part E (2017)

In the financial management process, the initial stage in the process is a financial or review of the firm. Financial analysis is essentially the first step towards gaining a sound understanding of a business. Financial analysis is the evaluation of a firm’s past; present anticipated future financial performance and firm condition. Its objectives are to identify the firm’s financial strengths and weakness and to provide the essential foundation for financial decision making and planning.

Business finance is that business activity, which is concerned with the acquisition and conservation of capital funds to meet financial needs and overall objectives of a business enterprise.

Financial functions of a business may be stated as the procurements of funds and their effective utilization