Introduction to Corporate Finance

Topic

Introduction to Corporate Finance

Instructions

1. Describe the goal of financial management.
2. Identify the three main areas of concern in corporate finance.
3. Explain the advantages and disadvantages of conducting business as a corporation

Answer preview

One of the main goals of financial management is to maximize profits and minimize expenses. In addition to this, financial management aims at maximizing the market share of a business organization. Maximizing profits is considered to be the most crucial goal since businesses aim at making money and keeping it. The three main areas of concern in corporate finance include capital structure, capital budgeting and working capital management.

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