Managerial finance which studies the financial decisions of all
firms, rather than corporations alone, the main concepts in the
study of corporate finance are applicable to the financial problems
of all kinds of firms.
Decisions relating to working capital and short term financing are referred
to as working capital management. These involve managing the
relationship between a firm's short-term assets and its short-term
liabilities. The goal of Working capital management is to ensure that the
firm is able to continue its operations and that it has sufficient
cash .
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Corporate finance is an area of finance dealing with the
financial decisions corporations make and the tools and analysis
used to make these decisions. The primary goal of corporate finance
is to maximize corporate value while reducing the firm's financial
risks. term financing are referred to as working capital
management.These involve managing the relationship between a firm's
short-term assets and its short-term liabilities.
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The discipline can be divided into long-term and short-term
decisions and techniques. Capital investment decisions are
long-term choices about which projects receive investment,
whether to finance that investment with equity or debt, and when
or whether to pay dividends to shareholders.
On the other hand, the short term decisions can be
grouped under the heading Working capital management. This
subject deals with the short-term balance of current assets
and current liabilities; the focus here is on managing cash,
inventories, and short-term borrowing and lending such as
the terms on credit extended to customers.
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