This document discusses the role of finance in business. It defines finance and sources of finance, and explains why businesses need finance for starting up, everyday bills, expansion, growth, and replacing equipment. The key points are: - Businesses obtain finance from internal sources like retained profits or selling assets, or external sources like loans that create debt. - Finance is classified as short-term (up to 3 years), medium-term (3-10 years), or long-term (over 10 years). - Short-term finance is needed for daily operations and cash flow management, which is the flow of money into and out of the business. Maintaining sufficient cash flow is important for business survival.