•Life blood of business (passive role except mainline for banks & financial institutions)•To make money, one requires money (exampleof a fruit vendor)•Lubricant to keep engine moving (Reliance)•Growth pangs (liquidity crisis despite profitabilityeg JM)•Examples of Subhiksha Stores, Lehman Bros,CitiBank, General Motors
Corporate Finance Overview
-Business activity concerned with planning,raising, investing & monitoring funds toachieve financial objectives of a corporateentity
is an area of financedealing with the financial decisionscorporationsmake and the tools andanalysis used to make these decisions. Theprimary goal of corporate finance is tomaximizecorporate valuewhile managingthe firm's financialrisks.
long term investments•Sourcing-capital structure & dividend pay-out•Day to day cash management- working(say moving…) capital & minimum idlecashQuestion: Is core working capital short termor long term for a going concern ?