Business finance is a branch of study concerned with the allocation, procurement and efficient management of business capital so that

a firm can maximize profit , increase its value and fulfill its social role. Business finance involves techniques of estimating and acquiring adequate capita l from alternative sources at the best possible terms for the users and their mo st profitable employment in business operations. The study of business finance, therefore, covers three major spheres: The allocation of an adequate supply of capital for business needs, both short-t erm and long-term; The procurement of funds at the most favorable terms at least cost to the busine ss; and The efficient management of capital for profit-maximization and increasing the v alue of the firm.