MCQ Detailed View

In industries, finance is often referred to as the “lifeblood of industries” because it is essential for the survival, growth, and development of any business or manufacturing unit. Just as blood carries nutrients and oxygen to keep the human body alive, finance provides the necessary funds and resources to maintain industrial operations, invest in machinery, pay employees, and manage daily expenses.

Industries require finance for several purposes: purchasing raw materials, paying for labor costs, acquiring or maintaining machinery and equipment, and expanding production capacities. Without adequate financial resources, industries cannot operate efficiently, regardless of the availability of raw materials or skilled labor.

Other options like Transport, Logistic, and Supplies are also important for industrial operations but cannot function without finance. Transport and logistics depend on funds for fuel, vehicles, and infrastructure, while supplies require money for procurement. Therefore, finance underpins all other operational aspects of an industry, making it the core element of industrial sustainability.

Understanding finance as the lifeblood of industries is fundamental for students studying economics, business, and industrial science, as it highlights the critical role of capital management, investment planning, and financial stability. It also demonstrates how financial resources drive industrial growth, innovation, and productivity.

Finance enables industries to expand, innovate, and compete globally, ensuring that production meets market demand. By emphasizing finance’s role, students can appreciate the interdependence between monetary resources and industrial development, highlighting why finance is often called the lifeblood of industries.