Finance is considered to be the foundation of basic activities of any business. Particularly in production and marketing activities, the finance functions in the same way as oil functions in the operation of machines or blood functions in the human body. In the absence of finance, nobody can imagine either of setting up a business or its operations and development.
Not only this, finance is needed even in those areas where economic activities of any type are performed. According to Husband and Duckeny,”Something must be there for directing the flow of economic activities and their conduct without any bottleneck. Finance is the only means which can perform this function.”