Question

discuss how corporate finance can be applied in guaranteeing  the company long term financial sustainability while balancing wealth maximisation

Answer 1

Corporate finance is helpful in better decision making when it will be coming to sustainability of an organisation because corporate finance promotes ethical decision making and disciplined approach which will be adopted by the organisation for long term because this approach is inclined at the philosophy of overall wealth maximization by protecting the interest of all the stakeholders in the organisation.

Corporate finance is a set of standard guidelines which will be followed by the organisation in decision making processes and they will be trying to upheld a very high standard of decision-making which will be promoting the protection of the interest of various stakeholders of the organisation and complying with the rules and regulations along with maximizing the value of the company in the long run and not just being a short sighted company,but always looking for the long term gains so this approach will be trying to maximize the value of the company in the long run and ensure the sustainability of the company by making ethical decisions and accepting all those projects which will be maximizing the value of the company rather than just maximizing the value of the shareholders because it does not just promote profit maximization but it is looking up on a larger prospect of wealth maximization of the overall company for the sustainable growth over a longer period of time.

The core concentration of corporate governance is protection of all the The stakeholders of the organisation and ensuring that the organisation is abiding by all the rules and regulations and standard measures which will be helpful in sustainability of the organisation in the long run and increasing the reputation of the business and maximizing the wealth in the long run.