Managing funds of business firms by balancing risk and profitability in order to maintain the long-term value of the firm, through financial planning and control, budget management, accounts receivable, inventories, borrowing (short and long-term), issuing securities and growth through mergers.
Context:
The complexity, diversity and necessary rate of growth of business has led to the discipline of scientific financial management in business.
Claim:
Financial planning, analysis and control is critically important to business.
Counter Claim:
Finance is a way of manipulating funds without necessarily achieving any real business growth.