(i) Money invested in deposits facilitates employment generation in various sectors of Economy and poverty alleviation.
(ii) The savings invested in bank deposits leads to credit creation in the country which in turn promotes Industrial and Agricultural Development in a country.
(iii) Savings invested in government bonds and various institutions helps in great measure in building in strengthening the infrastructure facilities in a country.
(iv) The country with higher savings can easily face the consequences of Economic recession.
(v) The bad consequences of inflation can be met easily with strong savings. As a result the evil effect of soaring prices can be controlled.

(i) Owner's Funds:
(1) Owner's Funds means which are provided by the owner of the enterprise who may be an individual or partners or shareholders of a company.
(2) The profits reinvested in the business (Ploughing back of profits) or retained earnings) come under the owner's funds.
(3) These funds are not required to be refunded during the life time of the Business Enterprises.
(4) It provides the owner the right to control the provides the owner the right to control the Management of the Enterprise.
(ii) Borrowed Funds:
(1) The term borrowed funds denotes the funds raised through loans or borrowings.
(2) For Example: Debentures, loans from banks and Financial Institutions, Public Deposits, Trade Credit, Lease Financing, Commercial papers, Factoring, etc. are called borrowed funds.

(i) Business Finance refers to the money required for carrying out business activities. The term Business Finance denotes the economic resources employed in Business Enterprises.
(ii) This term includes money and Credit Employed in the business. Business Finance is mainly concerned with arrangement of Cash and Credit for the Business Enterprises to carry out their day-to-day operations smoothly.
(iii) Finance is needed to start and establish a business to run day to day activities of the business to modernise, expand, and diversity the business.

(i) A firm with adequate Business Finance can easily start any business venture.
(ii) Business Finance helps the business organisation to purchase raw materials from the supplier easily to produce goods.
(iii) The business firm can meet Financial Liabilities like prompt Payment of Salary and Wages, Expenses, etc. in time with the help of Sound Financial Support.
(iv) The Sound Financial Support Enables the enterprises to meet any unexpected or uncertain risks arising from business environment efficiently.
For Example : Economic slow down, Trade Cycles, Severe Competition, Shift in consumer preference, etc.
(v) Sound Financial position empowers the enterprise to attract talented man power and introduce latest technology.

The following are the characteristics of Business Finance:
(i) Business Finance companies of all types of Funds namely short, medium and term used in the business.
(ii) All types of organisations namely small, medium and large enterprises require Business Finance.
(iii) The volume of Business Finance required varies from one business enterprises to another depending upon its nature and size. In other words, small and medium enterprises require relatively lower level of Business Finance than the large scale enterprises.
(iv) The amount of Business Finance required differs from one period to another. In other words, the requirement of Business Finance is heavy during the peak season while it is at low level during the dull season.
(v) The amount of Business Finance determines the scale of operations of Business Enterprises.