The following are the importance/significance of Business Finance:
1. A firm with adequate business finance can easily start any business venture.
2. Business finance helps the business organisation to purchase raw materials from the supplier easily to produce goods.
3. 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.
4. The sound financial support enables the enterprises to meet any unexpected or uncertain risks arising from business environment efficiently. For example economic slowdown, trade cycles, severe competition, shift in consumer preference, etc.
5. Sound financial position empowers the enterprise to attract talented manpower and introduce latest technology.

Yes. The money invested in various attributes helps in the economic development of a country.
The following are the reasons:
1. Money invested in bank deposits facilitates employment generation in various sectors of economy and poverty alleviation.
2. The savings invested in bank deposits lead to credit creation in the country which in turn promotes industrial and agricultural development in a country.
3. Savings invested in government bonds and various institutions helps in great measure in building in strengthening the infrastructure facilities in a country.
4. The country with higher savings can easily face the consequences of economic recession.
5. The bad consequences of inflation can be met easily with strong savings. As a result the evil effect of soaring prices can be controlled.

The factors influencing the choice of business finance are as follows:
Cost:
Business enterprises have to analyse the cost of mobilising and utilizing the funds. For instance where the interest rate is relatively lower, public deposits, debentures, term loan etc. may be desirable options. Financial Capacity of the Firm Financially sound enterprises have capacity to pay interest promptly and return the capital at the stipulated time. Such enterprises can go for borrowed source. On the other hand, if the firm is not financially stable, it has to depend on owned sources of fund.
Time Period:
The period for which business finance is required determines the suitable source. For instance, where funds are required for shorter period, bank finance like overdraft, cash credit, bill discounting, mortgage, pledge, leasing, hire purchase, factoring and so on, are suitable sources. Funds required for longer period can be tapped from issue of shares, debentures, bonds, term loan and the like.
Control:
Equity shareholders are real owners of corporate enterprises. They exercise complete control over the management of the company. If the existing shareholders do not like to lose their control, they must not issue more equity shares to supplement the financial resources. Contrarily borrowed sources of funds will not disturb the control exercised by the company management. Hence borrowed source is suitable for maintaining the administrative control of the company.
Stage of Development:
A new business enterprise finds it hard to mobilise business finance than an established firm. Therefore it may have to rely on owned sources in the initial stage. Once the business enterprise has established itself in the business world, they can tap borrowed source of funds and offer its assets as security therefor.
Credit Worthiness of Firms:
Some sources of funds like debentures and creditors require the business firms to mortgage the assets. This hurts the creditworthiness of the business concern in the financial market. Contrarily business concerns do nt have to mortgage its assets when they mobilise funds through sources like share capital, retained earnings, unsecured loans, etc. and thereby maintaining good image in the financial market.

These are various factors influencing choice of source of business finance.
(i) Cost: Business enterprises have to analyse the cost of mobilising and utilizing the funds. For instance where. the interest rate is relatively lower, public deposits, debentures, term loan etc., may be desirable options.
(ii) Financial Capacity of the Firm: Financially sound enterprises have capacity to pay interest promptly and return the capital at the stipulated time.
(iii) Forms of Organisation: The choice of source of fund depends on the form of organisation. Sole proprietor and partnership firms cannot issue shares and debentures. They have to depend on short' term sources like bank finance, leasing, hire purchase, factoring, etc.,
(iv) Time Period: The period for which business finance is required determines the suitable source. For instance, where funds are required for shorter period, bank finance like overdraft, cash credit, bill discounting, mortgage, pledge, leasing, hire purchase, factoring and so on, are suitable sources.
(v) Risk Factor: Owned funds do not invite any risk while using borrowed funds entails a lot of risk. The probable default in paying interest and capital may lead to the liquidation of business enterprises besides damaging the reputation of the business concern in the business world.
(vi) Control: Equity shareholders are real owners of corporate enterprises. They exercise complete control over the management of the company. If the existing shareholders do not like to lose their control, they must not issue more equity shares to supplement the financial'resources.
(vii) Stage of Development: Anew business enterprise finds it hard to mobilise business finance than an established firm. Therefore it may have to rely on owned sources in the initial stage.
(viii) Credit Worthiness of Firms: Some sources of funds like debentures and creditors require the business firms to mortgage the assets. This hurts the credit worthiness of the business concern in the financial market.