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What is corporate finance? What career opportunities are there for this industry?

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For businesses and investors, the corporate financial situation is always a top concern. So what is corporate finance? What role and function do they have? What are the career opportunities for students studying corporate finance? Let’s find out through the following article with newslax.com

What is corporate finance?

Corporate finance (TCDN) is a system of value transfer flows, reflecting the movement and transformation of financial resources during the distribution process. To create or use monetary funds to serve the production and business activities of the enterprise.

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TCDN is a term used to describe important tools and tasks that take place in the financial system of an enterprise.

The role of corporate finance

GDVT plays an extremely important and key role in every business. The following basic roles can be mentioned:

  • Mobilizing capital : Exploiting and attracting other financial resources to ensure continuous and regular business operations. 
  • Use financial resources effectively: Use and optimize capital resources to limit production costs and interest costs and corporate debt. 
  • Stimulating and promoting business activities : This role is most clearly demonstrated when using TCDN as a regulatory lever to stimulate business activities. In addition, businesses can skillfully use it to invest, determine interest rates, dividends, stocks, discounts, commissions, salaries, bonuses, etc. To increase labor productivity and create efficiency in business operations.
  • Control and analyze the situation of TCDN : Through daily financial reports and income and expenditure, business leaders can make the best decisions for the business situation of the enterprise.

Function

In essence, corporate finance is all activities related to mobilizing capital and using that capital to invest to create profits for businesses. In terms of functions, TCDN will include:

  • Distribution : Understood as the distribution of assets and capital. The distribution function is expressed in mobilizing capital and using capital to maximize production and business activities.
  • The function of evaluating, monitoring and adjusting capital distribution : This function is often called the financial director function. With the basic tasks of evaluating, monitoring, and adjusting capital sources. Through measurement tools, evaluate the situation of TCDN. From there, there are comments and analysis, making reasonable financial strategies for each period of the business.

Principle of operation

Depending on each different business line, there are different GDVT operating principles. However, basically, businesses must comply with the following 3 TCDN principles:

  • Respect for the law : This is the first and most basic principle of TCDN operations. All financial activities from project planning to project implementation need to comply with all current legal regulations.
  • Have a plan : All financial activities from capital mobilization to capital use must have a specific plan, including short-term, medium-term and long-term plans. These activities need to ensure respect for the law from project formulation to implementation.
  • Efficiency: Corporate financial institutions need to operate effectively so that all activities within the business are positive. This process will affect the revenue and expenditure of the business.
  • Financial balance: TCDN activities always need to balance risks and profit margins. Enterprises can apply diversification in investment fields or product portfolios to create a balance in enterprise standards.

Enterprise Financial Management

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Finance is the source of energy for all activities of a business. For a business to operate well, the financial management process must be carried out effectively. Vocational training management is demonstrated through analysis, reporting, and management of vocational training standards.

Corporate financial analysis

This is a very important thing in GDVT management, through analyzing the financial situation to confirm risks, weaknesses and advantages of the company’s finances. Analysis helps evaluate what stage a business’s operations are in? And based on the specific data of the balance sheet and financial statements, it helps forecast the future financial situation.

Corporate financial reports

Financial statements are an important report, helping to provide information about the company’s financial situation, business and cash flows. Through financial reports, leaders and investors can determine the financial “health” of the company or project. To provide specific strategies in production and business activities.

Corporate financial management

Enterprise financial management is the process of planning, controlling, organizing and monitoring financial resources to bring about common goals for organizations and companies. By applying general principles to a business’s assets, it helps maximize profits from effective capital management or controlling existing risks in the company, in order to provide solutions to overcome them. effective recovery.

  • Always have a backup financial plan: You should build a reserve fund for your business when the project or business situation is not favorable. This will help the company not fall into crisis.
  • Minimize debt : One of the priorities of businesses is to minimize debt. Because debt is the foundation that puts businesses under pressure to repay debt when the business situation is not favorable.
  • Forecasting and cash flow management : Businesses should maintain detailed daily currency forecasts, for each product and item on a rolling basis for the next 6 months. And with detailed cash flow management, the system will help businesses develop most sustainably. All revenues and expenditures, loans, salaries, investment costs, etc. need to be listed in detail and carefully monitored.

Career opportunities for corporate financial management

After learning the importance of GDVT, what is the point of studying corporate finance? Let’s learn about some careers you can start working in after graduating from TCDN.

Financial appraisal

Carry out tasks related to establishing and appraising financial sources for the company in investment projects. In addition, for the financial appraisal position, you can work for banks or business credit appraisals.

Manager 

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This is a profession with extremely high and attractive salaries. To take on this position, you need to fully meet the skills of TCDN administration such as:

  • Evaluate and select appropriate capital mobilization and profit distribution options for the business.
  • Provide analysis and assessment of the financial situation of the business at the present time. From there, we can promptly detect business problems and propose improvement plans.
  • Carry out financial planning and build a financial resource management mechanism for the company.
  • Identify risks and factors that can affect the company’s financial activities. Thereby establishing an effective risk management and cash flow system.

TCDN staff

For new graduates, this is the starting position to practice what you learned in school. The tasks that need to be done are quite simpler than those of the director of TCDN. 

To undertake this position professionally, in addition to practical knowledge. Need to refer to TCDN books, investment strategies and specialized business activities of projects and enterprises. 

Financial risk management

This is a job in the finance department. For businesses, whether large or medium-sized, financial risk management is important. Therefore, when studying corporate finance, you can become a TCDN risk management officer for a company or project.

Conclude

Corporate finances are one of the company’s guiding principles and need to be carefully checked and controlled by employees to avoid wasting or someone “corrupting” the company’s money.

How do you feel? Please leave a comment below!

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Danh mục: Business

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