What is the main responsibility of corporate finance?

The main responsibility of corporate finance revolves around the effective management of capital structure and investment decisions. This area of finance focuses on determining how a company finances its operations and growth, deciding the proportion of debt versus equity, and evaluating potential investment opportunities to maximize shareholder value.

The tasks within corporate finance include analyzing financial performance, planning future finances, managing cash flow, and making decisions regarding mergers and acquisitions. By focusing on optimization of capital structure, corporate finance helps ensure that a company can secure the necessary financing at an optimal cost, which directly impacts profitability and sustainability in the long term.

Other options, such as managing marketing strategies, overseeing employee welfare, or increasing market share through product sales, are vital functions within a business organization but do not directly fall under the purview of corporate finance. These responsibilities relate more to specific areas like marketing or human resources rather than the financial strategically-oriented functions associated with managing a company's capital and investments. This distinction highlights the specific role of corporate finance in supporting the overall financial health and strategic direction of a company.