Friday, October 8, 2010

Corporate finance

Corporate finance refers to financial intermediation enterprises as the mainstay, the links between enterprises and their internal funds from the imbalance of supply and demand to balance the movement. When a shortage of funds, the cost of raising the minimum to the appropriate period of time, the appropriate amount of funds; when the capital surplus, the lowest risk, the appropriate time running out to get the maximum benefit, in order to achieve balance between supply and demand of funds.
Introduction
Corporate finance is based on the assets, rights and the basis of expected return, raising the project construction, operation and funding necessary to conduct business development process. The development of enterprises, is a financing, development, refinancing, and further development of the process. General business to go through the stages of product management, brand management and capital operation phase stage. With the continuous development of modern enterprises themselves, the enterprise collaboration with the socio-professional organizations to solve their own problems more popular. Accounting firms, law firms, financial public relations, financial advisory and other professional bodies there, all stages of business development for the provision of professional services. With the continued refinement of social division of labor, business development was put on a standardized way.
Meaning
Corporate finance is an enterprise from their own production and operation situation of status and use of funds, according to the company's future business strategy and development needs, through certain channels and methods, the use of internal accumulation or corporate investors and creditors to raise production and operating capital an economic activity. Corporate finance is an enterprise financing through a variety of ways and means necessary for the survival and development activities of the funds. Enterprise funds are the body's blood production and business activities of enterprises to the necessary conditions, not enough money, business survival and development without security. Corporate finance is an enterprise to external relevant entities and individuals as well as internal financing from the funds needed for production and management of financial activities. Organizational innovation is the rules of the organization, trade the way, means or procedure changes. Corporate finance generally refers to non-financial enterprises long-term funding problems in the market economy, corporate finance are two general ways: First, the source of financing, about the accumulation of their own money into investment available process. The development of enterprises depends on the availability of stable sources of funds, corporate finance mainly refers to the enterprises in the financial market financing. Therefore, corporate finance and capital supply system, financial markets, financial institutions and credit culture has a close relationship.

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