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What is corporate finance in simple words


Corporate finance is concerned with how businesses fund their operations in order to maximize profits and minimize costs. It deals with the day-to-day operations of a business' cash flows as well as with long-term financing goals (e.g., issuing bonds).

What is meant by the term corporate finance?

Corporate finance refers to activities and transactions related to raising capital to create, develop and acquire a business. It is directly related to company decisions that have a financial or monetary impact. It can be considered as a liaison between the capital market and the organisation.

What is example of corporate finance?

Examples of corporate financiers' decisions include considering investment decisions, how to pay for investments, how to source capital and when shareholders can receive cash as dividends. Corporate finance also involves investment banking.

What are the basics of corporate finance?

The investment, financing and dividend principles are the three basic principles of corporate finance.

What is the main goal of corporate finance?

Definition and Scope Corporate Finance:\n\n the capital of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize or increase shareholder.




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