A corporation is a legal entity that is separate and distinct from its owners (the shareholders). Sometimes, we use the term �moral person� to refer to a corporation and to show that it has many rights and responsibilities just like any individual. For example, a corporation can sign contracts, lend and borrow money, sue and be sued, own assets and pay taxes�etc.
Corporate finance has two main objectives. The first is to provide the corporation with enough cash to allow its growth and pay its dues. The company sells securities like bonds and stock in order to get the cash.
The second purpose of corporate finance is to make sure that the company is providing a good return on investment, at least equal to that required by investors and creditors.
Throughout the next pages, you will learn about the major processes that rule the complex world of corporate finance, but before, make sure to know well the Basic concepts.
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