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Corporate finance - Corporate finance

Viewed: [180] | Comments: [0] | 24-01-2010, 00:21
Managerial or corporate finance is the task of providing the funds for a corporation's activities. For small business, this is referred to as SME finance(Small and Medium Enterprises). It generally involves balancing risk and profitability, while attempting to maximize an entity's wealth and the value of its stock.

Long term funds are provided by ownership equity and long-term credit, often in the form of bonds. The balance between these forms the company's capital structure. Short-term funding or working capital is mostly provided by banks extending a line of credit.
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