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 capital from alternative sources at the best possible terms for the users and their most 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-term and long-term;

The procurement of funds at the most favorable terms at least cost to the business; and

The efficient management of capital for profit-maximization and increasing the value of the firm.