How corporate finance mainly concern with procurement of fund and efficiency utilisation of fund?
How corporate finance mainly concern with procurement of fund and efficiency utilisation of fund?
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Mar 25
Corporate finance is mainly concerned with the procurement of funds and the efficient utilization of those funds to achieve the financial goals of a company.
Procurement of funds involves raising capital through various sources such as equity, debt, or retained earnings. This process involves evaluating the cost of capital, assessing the risk associated with different sources of funding, and determining the optimal capital structure for the company.
Once funds are procured, corporate finance focuses on efficiently utilizing those funds to generate returns for the company and its shareholders. This involves making investment decisions, managing working capital, and evaluating the performance of investments to ensure they are generating a positive return.
Overall, corporate finance plays a crucial role in ensuring that a company has the necessary funds to operate and grow, while also maximizing the value of those funds through efficient utilization.