What is Finance Function

Answer Posted / somya

The five basic corporate finance functions are described as
those functions related to;
1) raising capital to support company operations and
investments (aka, financing functions);
2) selecting those projects based on risk and expected
return that are the best use of a company's resources (aka,
capital budgeting functions);
3) management of company cash flow and balancing the ratio
of debt and equity financing to maximize company value (aka,
financial management function);
4) developing a company governance structure to encourage
ethical behavior and actions that serve the best interests
of its stockholders (aka, corporate governance function);
and
5) management of risk exposure to maintain optimum risk-
return trade-off that maximizes shareholder value (aka, risk
management function).

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