Why is knowledge of economics essential in fianncial management?

Which is better way of raising funds for the enterprise, stock or bond? Please explain

Finance is a branch of economics, in addition the quantitiative skills necessary for general economics are similar to those necessary for finance. More specifically, statistical analysis and econometrics.

To answer the second question, bonds or debt securities would probably be a better way for most companies to raise debt. It is less expensive to issue debt, and they have the added bonus of tax deductions on the interest. There are more reasons why debt is better than stock, a textbook on Financial Management would be better in explaining them all.

Very few companies ever grow to be large enough to develop a need to issue stock, which is a long, expensive process.

Because finance, unfortunately, is based on "economics". One must know the basics of economics (how money flows and what happens when economies change) in order to understand finance and it's involvement in business or and commerce. Bonds are less risk. Therefore unless one knows the stock market (business, trade, finance and economics) one is safer buying bonds, utilities, and the such. Also Bonds, and the sort, are more stable as longevity goes.

You have to understand how the scams work, especially capitalism.

stock...............you don't have to give any money away..
bonds...you have to pay the bond off eventually..........