Corporate finance topics
The five basic corporate functions are financing (or capital raising), capital budgeting, financial management, corporate governance, and risk management.
These functions are all related, for example, a company needs financing to fund its capital budgeting choices..
How do corporations finance their operations?
The three major sources of corporate financing are retained earnings, debt capital, and equity capital.
Retained earnings refer to any net income remaining after a company pays off any expenses and obligations..
What is corporate finance activity?
Corporate finance is a branch of finance that focuses on how corporations approach capital structuring, funding sources, investments, and accounting decisions. 1.
Its primary goal is to maximize shareholder value while striking a balance between risk and profitability..
What is corporate financing activities?
It deals with the day-to-day demands on business cash flows as well as with long-term financing goals (e.g., issuing bonds).
Corporate finance also deals with monitoring cash flows, accounting, preparing financial statements, and taxation..
What work is done in corporate finance?
However, it's safe to say that corporate finance professionals carry out several standard duties: they analyze company revenues, advise company managers on project costs, and write up financial reports and statements.
Some handle the day-to-day operations of an organization's cash flow..
