Business finance, or corporate finance, covers all the financial activities related to running a business. You can think of this in terms of acquisitions and investments, funding, capital budgeting, risk management, and tax management needed for business growth in financial markets.
Companies must balance cash flow, risks, and investment opportunities to increase their value and strengthen their capital structure.
A great example of corporate finance is when a business chooses between equity financing and debt financing to raise capital. Equity financing is the act of securing funding through stock exchanges and issues, while debt finance is a loan that must be repaid with interest on an agreed date.
Businesses have to develop a revenue-generation plan which determines business profitability in the medium- and long term.
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