Abstract

In Banking sector every decision made in a business has financial implications, and any decision that involves the use of money is a corporate financial decision. Defined broadly, everything that a business does fits under the rubric of corporate finance. It is, in fact, unfortunate that we even call the subject corporate finance; because it suggests to many observers a focus on how large corporations make financial decisions and seem to exclude small and private businesses from its purview. In other words corporate finance is arrange for the discipline on Business Finance, because the basic principles remain the same in the banking sector, whether one looks at large, publicly traded firms or small, privately run businesses. All businesses have to invest their resources wisely, find the right kind and mix of financing to fund these investments, and return cash to the owners if there are not enough good investments.

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