Business finance refers to the management of funds and resources within a company to ensure its growth and stability. It involves planning, raising, investing, and monitoring financial resources to achieve business objectives. Key components include budgeting, forecasting, and financial analysis, which help businesses make informed decisions. Effective business finance also encompasses understanding various funding sources, such as loans, equity, and grants. Companies often rely on financial statements, like balance sheets and income statements, to assess their financial health. Proper management of these aspects is crucial for sustaining operations and maximizing profitability in a competitive market.