Michael Taillard

Everything that makes up a corporation and everything a corporation owns, including the building, equipment, office supplies, brand value, research, land, trademarks, and everything else, are considered assets. Believe it or not, when you start a corporation, that company’s assets aren’t just included in a Welcome Letter; you have to go out and acquire them.

Corporate finance is the study of how groups of people work together as a single organization to provide something of value to society. It’s the job of those in corporate finance to manage the organization so that resources are efficiently utilized, the most valuable projects are pursued, the corporation can remain competitive, and everyone gets to keep their job.

Financing institutions are kind of like banks in that they lend money, but they’re a bit different, too. First of all, they tend to give different types of loans than banks do. Secondly, they get their funding by borrowing it themselves instead of through deposits. They earn a profit by charging you higher interest rates than they’re paying on their own loans.

Corporate finance is the study of relationships between groups of people that quantifies the otherwise immeasurable. Take a look at the role of money in the world to understand how this definition makes any sense at all. According to Adam Smith, an 18th century economist, the use of money was preceded by a barter system.

Corporate finance plays a very interesting role in all societies. Finance is the study of relationships between people: how they distribute themselves and their resources, place value on things, and exchange that value among each other. Because that’s the case, finance (all finance) is really the science of decision-making.

You've decided that a career in corporate finance is absolutely your life's calling, so what do you do next? You need to bone-up on some essential mathematical and computer skills that not everyone warns you about when you first begin your journey into corporate finance. Whether you're pursuing your college degree or a professional certification, these skills tend to be sorely neglected, leaving many completely unprepared for the workplace.

Corporate finance jobs aren’t just about crunching numbers all day in a hidden corner of a corporation’s financial department. A variety of employment opportunities are available within the corporate finance function, including the following: Entry-level positions: The entry-level positions in corporate finance are typically the same as the ones you see in accounting: Payroll: The people who make sure you (and the rest of your company) get paid Accounts receivables: The people who process incoming payments and money owed Accounts payables: The people who process outgoing payments and money owed to others Bookkeeping clerks and other forms of paperwork processing: People who work on data entry; think Charles Dickens’ character Bob Cratchit from A Christmas Carol Analysts: These people get to do a whole lot of research and analysis to derive useful information from data or otherwise yet unstudied scenarios.