Corporate finance may be the field of finance that handle financial decisions of companies. Its main purpose is to analyze the different factors that may increase the market price of companies by improving profit percentage and limiting the risks and constraints involved. It is one of the main branches of finance and it is important to the economy of a nation.

The main goals of corporate finance are:

1) To assess the appropriateness of investment decisions.

2) Optimize the dwelling of corporate balance sheets.

3) To reward providers of capital i.e. the investors or share holders.

4) Increase the financing conditions i.e. improve credit ratings so that the corporation can borrow more capital from financial institutions.

It involves managing internal resources like hr in addition to managing business banking requirements of a company. The financial departments are normally in control of the evaluation of investment projects based on various factors. The companies also recruit the expertise of investment banks to advise them on financing methods, acquisitions, and financial risks and also to work as intermediaries between the company and the economic agents in lending like banks, investors etc.

The main motive of any clients are to maximise profit which will be efficiently achieved by purchasing new ventures since it increase productivity and purchases. However, before investing there are factors that need to be considered and analyzed, which can be:

Risk Involved: In corporate finance, study regarding risk is completed at nearly every step of operation and mainly before starting a fresh project. A comprehensive study and research involving a myriad of risks will advise you the feasibility of a project. For example, the management of an organization identifies a region where they think it will likely be very economical to start a brand new manufacturing unit however, risk study implies that the region is politically unstable so the management is not going to proceed with creating the plant as well particular area, thinking about the risk involved.

Availability of resources: To keep a business running, it's important that there's no insufficient required resources and thus prior to starting any new venture, corporations first study the supply of resources. The price of obtaining resources is considered in addition to transportation along with other factors affecting them.

Thus, corporate finance is really a vast field which encompasses all aspects of running a business having a motive for being profitable to be able to sustain in a competitive market.