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Ch 8Basics of Business Finance — Class 11 Commerce, concept-first.

Every business, whether a small tea stall or a large joint stock company, needs money to start, to run and to grow. This need for money, and the activity of arranging and using it wisely, is what the Andhra Pradesh Intermediate Commerce syllabus calls business finance.

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Key concepts

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Business Finance

Business finance means the funds an enterprise needs to start, run and expand its activities, together with the two-part task of procuring those funds from suitable sources and then utilising them effectively across purc…

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Chapter contents

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Meaning and Scope of Business Finance

Every business, whether a small tea stall or a large joint stock company, needs money to start, to run and to grow.

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Importance of Business Finance

Finance touches every stage of a business's life, which is why the AP Intermediate first-year Commerce course places it right after the chapters on forms of business organisation.

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Types of Financial Needs: Fixed Capital Requirements

Every business enterprise has two broad kinds of financial needs — fixed capital needs and working capital needs — and understanding this classification is central to this chapter of the Andhra Prades…

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Types of Financial Needs: Working Capital Requirements

While fixed capital finances the permanent assets of a business, working capital finances its day-to-day, short-term operations.

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Capital Structure: Meaning and Basic Principles

Once a business decides how much fixed capital and working capital it requires in total, the next question is: in what proportion should this money be raised from different long-term sources? The answ…

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Factors Influencing Capital Structure Decisions

Deciding the right mix of equity and debt is one of the more challenging decisions a firm's finance function makes, and several factors are weighed together before a workable capital structure is sett…

Sample & Board Papers

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