Nature of Business Finance: The following characteristics can be derived from the above definitions.
- Business finance comprises all types of funds namely short, medium, and long-term used in business.
- All types of organizations namely small, medium and large enterprises require business finance.
- The volume of business finance required varies from one business enterprise to another depending upon its nature and size. In other words, small and medium enterprises require a relatively lower level of business finance than large-scale enterprises.
- The amount of business finance required differs from one period to another. In other words, the requirement of business finance is heavy during the peak season while it is at a low level during the dull season.
- The amount of business finance determines the scale of operations of business enterprises.
