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Introduction:

Abstract

Finance plays a critical role in all aspects of individuals and the society. In the area of business for instance, the adequacy or otherwise of finance is a good indicator of the extent of success or failure of any venture. Since the economy of the world is generally monetized financial considerations must feature at all stages of the operations of any business. No business, no matter how presently buoyant has all the money it requires to carry on its activities the way it wants. This is natural business, like persons have unlimited wants and needs on which to spend money. As a result businesses keep on exploiting all avenues for getting funds as much as possible. Often many businessmen in private sectors have complained about lack of adequate finance. This is a big concern as lack of finance can paralyze business as business needs finance to hire labour, obtain raw materials and utilities, obtain and maintain equipment, expansion of the business and many other.



Profitability serves as a factor in measuring success. If the business is making good profit, it is succeeding but when it is running at a loss, it implies that the business is failing. The growth rate of the business is measured by how much profit it has made.

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