Finance Handbook (Professional Edition)

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Finance
Main article: Corporate finance
Managerial or corporate finance is the task of providing the funds for a corporations activities. For small business, this is referred to as SME finance(Small and Medium Enterprises). It generally involves balancing risk and profitability, while attempting to maximize an entitys wealth and the value of its stock.

Long term funds are provided by ownership equity and long-term credit, often in the form of bonds. The balance between these forms the companys capital structure. Short-term funding or working capital is mostly provided by banks extending a line of credit.