Difference between Corporate Finance and Finance
Basis |
Corporate Finance |
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Scope of Application |
Particularly deals with what some say to be company’s or business’s financial frames of reference and techniques they employ to strategize on these resources. |
In Includes Managing money, investments, and financial resources over all sectors, such as personal finance, public finance, banking, stock markets, and investments. |
Objectives |
Targeted at both, shareholders and other capital suppliers – ultimately, intended to accomplish certain objectives related to profit maximization as well as improving the company’s long-term position in the marketplace. |
The aim is that resources are efficiently applied, risks are managed and highest benefits are achieved in various sectors, which can be a single entity to the sectors like individuals, governments and organizations. |
Decision-Making Context |
Corporate finance which is the heart of finance encompasses a myriad of financial activities both at corporate level and external operations such as capital budgeting, capital structure decisions, dividend policy, mergers and acquisitions, and financial planning and analysis. |
Caters to a wide range of financial decision-making processes including investment capitalization, funding decisions, risk management, and financial analysis of several sectors and bodies. |
Stakeholders Involved |
Basically financial strategies tend to be targeted shareholders, management and corporate stakeholders and hence they are geared towards these stakeholders. |
Includes several actors from all areas that involve community members, investors, financial systems, governments, and business as well as with different interests and objectives. |
Regulatory Environment |
Takes into account the legal regulations from corporates and other governance rules like financial reporting, corporate governance directives, and business laws and regulations. |
Functions within a regulatory stint which stands for the administration of financial markets, institutions, and activities with the aim of establishing transparency, integrity, and equilibrium in the financial system. |