This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
In this volume is considered the subject of securing and handling money and credit for business enterprises. If these terms were used with strict accuracy, the statement might be shortened by leaving out the reference to money; for, after all, credit in one form or another is almost the only element-with which we have to deal. But it is not necessary here to enlarge upon these technical limitations.
Financing deals, first, with the raising of the initial capital needed for business enterprises, what securities to issue, how and to whom they should be sold, how best to utilize the funds thus secured, together with their proper apportionment for plant, equipment, and working capital; second, with the accurate determination of profits and their allocation to dividends, surplus, sinking fund and reserves, and the enlargement of capital permanently invested. It is concerned with the forecasting of business development and resulting financial needs and with provision for the business equivalent of a "rainy day".