Corporate finance is a special field which deals with the financial decisions that are taken by the corporations. These decisions are actually taken along with all the analysis that are done by the concerned people with the help of several software and tools that are required for taking such decisions. The main principle and aim of corporate finance is reducing the financial risks of the particular company. And not only that, the key concepts of corporate finance are in fact applied by all type of firms that are encountering financial problems.

Nevertheless, as far as the discipline is concerned it can be split into two very distinct parts, such as short term and the long term. These are actually two different techniques of taking very important financial decisions