Some corporations claim to be federations but actually operate as
confederations. A confederation exists when a consolidated corporate information
organization is divided among the individual business units while a small
corporate staff is retained with a largely undefined and emasculated mission.
Corporate finance pertains to the acquisition and allocation of a company's
resources to maximize shareholder wealth. More simply, it is the process of
obtaining funds and investing them in a manner that will maximize profits and
build value for shareholders.