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The Scope of Corporate Finance - Coggle Diagram
The Scope of Corporate Finance
FINANCIAL DECISIONS
Company needed financing to produce and market its product
Going public
Advantages: Increase the company stock price / Equility
Disadvantages: insider trading prohibitions / dislosure requirements
Decide if invest
Get investors and shareholders
Decide stock price
Decide policies for investors and shareholders
FINANCING
Loan from a founding Share Holder
Private equity
Generating wealth for Share holders
CORPORATE BRANCHES
Shareholders (own the company)
Board directos (the ones who instruct the manage team)
Managers
Capital Budgeting: is the process to decide which long-term investment initiatives to undertake
Financial management function: making sure that the company has
Investment and Operations
-New production lines
-New research and initiatives
-Sales and logistics
Get regulatory approval (government), then produce and sell
