What is Corporate Finance?
Assume you’re about to launch your own company. You’d have to answer the following three questions in some way or another, no matter what kind you started with:
1. What are the best long-term investments for you to make? That is, what types of businesses will you run and what kinds of structures, machinery, and equipment would you use?
2. Where are you going to acquire the long-term funding you need to make your investment? Will you take the assistance of other owners or take out a loan?
3. How will you handle day-to-day financial tasks like collecting money from consumers and paying suppliers?
These are by no means the only concerns, but they are among the most critical. The study of strategies to address these three issues is known as corporate finance.
