Corporate finance refers to activities and transactions related to raising capital for the creation, development and acquisition of a business. It is directly related to company decisions which have financial or monetary impact. It can be considered as a liaison between the capital market and the organisation. Corporate finance is important for planning finances, capital raising, investments, and risk management and financial monitoring and it involves managing the required finances and its sources. It is the discipline of finance that deals with financing, capital structuring, and investment decisions. It has three main areas of concern: capital budgeting, capital structure, and working capital. Every single decision made in a business has financial implications, and any decision that involves the use of money is a corporate financial decision. Corporate finance involves managing the required finances and its sources.

Saket Kumar

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