Corporate finance refers to the financial activities related to managing a company's capital structure, investments, and overall financial strategy. It focuses on decisions regarding funding, such as issuing stocks or bonds, and managing cash flow to support growth and operations. Key aspects include capital budgeting (evaluating investment opportunities), risk management, and financial planning. Corporate finance aims to maximize shareholder value by balancing risk and return in investment decisions. It also involves managing mergers and acquisitions, dividend policies, and maintaining financial health through effective budgeting and financial reporting.