is my understanding of the meaning of corporate finance correct?



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it is a tool or technique to take decisions at evry step of a business life cycle

1 Answer(s)


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yes.

In all the stages of business life cycle u have decisions to make and any decision that involves the use of money is a corporate financial decision.

corporate finance deals with monitory decisions.

corporate finance is the study of how money is managed in a company and the actual process of acquiring (sourcing) needed funds.


For example, In growth stage of life cycle you need more money so the which is better source of fund (equity/ debt (loan)/ both), if both combined how much should be equity and how much should be debt (loan) etc...

hope that answers