What area of finance does "corporate finance" encompass?

Corporate finance primarily focuses on the financial activities related to managing a corporation's funding and investments. It involves strategies for sourcing capital, allocating resources, and making investment decisions that will maximize the company’s value while managing risks. This area specifically addresses how a corporation can optimize its capital structure, reinvest profits effectively, and make decisions that enhance shareholder value.

In contrast, government funding for businesses typically deals with grants or subsidies provided by government entities, which is outside the purview of corporate finance. Investment strategies for individuals refer more broadly to personal finance and wealth management, focusing on individual investors’ choices rather than corporate budgeting and finance. Real estate financing techniques, while a component of finance, focus specifically on property investments, which does not encapsulate the overarching goals of corporate finance that involve a variety of funding sources and investment opportunities across industries.