Corporate finance makes an emphasis in which the financial manager is in charge of doing an analysis to know what financial resources the company has in order to see how to make more investments within it and thus be able to generate more profits.
In any case, finances help us to contribute to the good development of the company as long as everything is going well within it, there would be the opportunity to inject capital and thus increase the shares.
Corporate finances are divided into four decisions which must be taken into account:
- Investment decision: Carry out a market study to find out if the product in which you want to invest is demanding in order to obtain good results. Since every company aims to be recognized in the market to be able to compete with its products and thus strive for the realization of a product of good quality rather than the competition. Financing decision: Analyze the production channels available to make an analysis of the capital that will be needed to extract the raw material Dividend decision: Emphasize the profits that have been achieved to make concrete decisions for the good development of the company Directive decisions: Agree with the partners to be fixed in a single objective to be able to achieve the desired objectives and therefore achieve the desired goal.
Well, this is how we realize that finances are important for any type of company, no matter how small the company or the place with which we work, we are investing a capital of which our objectives is to generate profits, profits and make it grow.
That is why we must take into account some of the threats that could happen to us as a company and that is why we must set short, medium and long-term objectives to face these problems and thus have the necessary tools to solve them. and make the appropriate decisions for the proper functioning of the company and these do not affect it.
As entrepreneurs, we must bear in mind that they will not always be profits and that our products will always be above the rest, we must bear in mind that everything is changing and that is why we must be innovating new products and be aware from the competition so that we always stay in the desired place and be able to generate good results.
conclusion
As we have seen, the objective of corporate finance is to generate profits and act for the benefit of shareholders.
Bibliography
- Dumrauf, G. (2010). Corporate Finance: A Latin American Approach. 2nd ed. Mexico: Alfaomega. Weston, JF and Brigham, EF (1993). Fundamentals of financial administration. 10a. ed. Mexico: McGraw-Hill. Van Horne, J. (1988). Financial administration. 7a. ed. Mexico: Prentice Hall, Brealey, R. and Myers, S. (1992). Principles of corporate finance. 3rd. ed. Caracas: McGraw-Hill.
