Corporate finance refers to activities and transactions related to raising capital for the creation, development and acquisition of a business. It is directly related to company decisions which have financial or monetary impacts. It can be considered as a liaison between the capital market and the organisation. The corporate finance definition also encompasses effective resource utilisation and expenditure minimisation. Factors that contribute to its decision include term requirements of the company, urgency, risk appetite, etc.
A business undertakes such decisions to achieve pre-set financial goals while ensuring maximisation of shareholder value. Apart from understanding what corporate finance is, understand what it covers.