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Even though corporate finance is an area of finance, it itself engages a vast area. Managing finances of a corporation faces lots of strict policies and laws, which are imposed by the government. These laws and regulation are necessary to be implemented because the government needs to be sure that all the transactions are recorded and explainable, and the income of the organization is completely pure. These laws are implemented to remove the chances of forgery and the company is paying proper taxes according to its earnings.

It also helps the company to view its rate of growth. A company can easily assess itself by viewing its balance sheet. By viewing the finances of a company, corporate finance implements measures that could be helpful in the future and current risk. It even involves making strategies for efficiently handling the resources of a company. Though it requires professional accounting but it in turn eradicates or deals with the credit risks and market risks. Additionally, companies are dealing with large amount of cash as compared to personal finance; the impact of the change in foreign exchange highly affects the earnings of companies.

Financial management also provides restructuring of business to improve the earnings of the company.

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