This finance deals with finding ways to accumulate capital for business activities, as well as determining what should be invested in order to earn higher returns. There are various theories on the subject, including the theory of demand and supply, capital budgeting, and the business cycle. The supply chain theory postulates that the supply of resources determines the price level of certain goods and services, while the other theories postulate that business cycles are caused by changes in the supply of funds, factors affecting the balance of payments, the rate of interest, and the structure of banks. There are also theories which attempt to explain away the gaps between the…