FAQ

What are the 3 main areas of corporate finance?

Three main areas of corporate  finance include: capital budgeting, capital structure, and working capital management.

  • Capital budgeting: Capital budgeting is a long-term strategy. It entails determining which revenue-generating areas of a business should receive funding and in what amount.
  • Capital structure: The capital structure of a company determines how it obtains long-term financing. This can be in the form of debt, equity, or internal revenue (more on this later).
  • Working capital management: Working capital management involves monitoring and managing a company’s short-term funds, which include everything from short-term borrowing to inventories and everything in between.

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