The Significance of Corporate Finance in Today’s World
The arena of corporate finance manages the choices of finance taken by companies along with the tools necessary for taking such choices. The main aim of corporate finance is to enhance the corporate value and at the same time reduce the financial risks of the company. Moreover, corporate finance also handles things like how to get the maximum returns on the capital that has been invested. The major theories of corporate finance are applied to the difficulties of finance met by all kinds of firms. In simple language, corporate finance is the procedure of tallying capital requirements to the operations of a business.
Finance is the soul of business and is needed by all kinds of companies. In order to starting up or closing down a company, finance is required. It is also required for running a company and for the stability, growth and survival of a company. In addition to this it is needed for diversification and expansion of a business.
So, a company cannot live on without finance. A company requires promotional finance to start the company, long-term finance to buy fixed assets and it also requires finance for expansion, growth and divergence of business.
Dessa Bokides , the CFO of DFC Global Corp. has vast knowledge in corporate finance says this service includes a varied range of help such as dealing with money, which includes credit-card companies, banks, accountancy firms, insurance companies, stock broking firms, investment management companies etc. Mentioned below are some of the significances of corporate finance:
- Corporate Finance is required for research and development as without it a company cannot survive. The company can survive in the market only by launching new things, by making changes to the old things.
- It is required for advertising a company, for preparing Memorandum of Association, Prospectus, Project Report, Articles of Association, etc. For buying fixed assets, plant and machinery and land and buildings finance is required. It is also required to pay salaries and do other expenses.
- In order to meet contingencies; the corporate finance is required.
- In order to conduct the business smoothly, corporate finance is required.
- It you want the size of the company to increase or if you want to produce and sell new products, modern techniques and modern machines then finance are needed. So, finance becomes compulsory for expansion and diversification of a company.
Dessa says that corporate finance is eventually a manipulating act. It must effectively balance aspirations, risk and returns; ownership potential so, that it can interests both internal as well as external shareholders.
Before joining DFC Global Corp. Dessa Bokides has been associated with the following organizations:
- Alta Colleges
- GMAC LLC
- Galileo Global Education
- Pitney Bowes
- Deutsche Bank
- Goldman Sachs
In all these companies, Dessa has been designated in various positions. Ms. Bokides challenges, understands, inspires and supports people and is always open to offers, and to talk about risks, opportunities, and issues. Dessa repetitively drives the staff to expand their abilities, and to work with the field staff and operations.