What percentage of revenue is attributed to Corporate Finance activities?

Prepare for the GARP Financial Risk Manager (FRM) Part 1 Exam. Use our quizzes featuring multiple choice questions with hints and detailed explanations for comprehensive understanding!

The selection of 18% as the percentage of revenue attributed to Corporate Finance activities reflects an understanding of the typical financial structure and revenue generation strategies within organizations. Corporate Finance encompasses a range of activities focused on maximizing shareholder value through strategic financial management, which includes investments, capital structure management, and risk management.

In many firms, Corporate Finance represents a substantial portion of overall revenue as it directly influences the company's ability to raise capital, invest in new projects, and manage its financial resources efficiently. The figure of 18% aligns with industry averages and provides a realistic estimate of how much revenue can be traced back to these crucial functions.

Percentages like 12%, 15%, or 20% may not accurately capture the nuances of revenue attribution dedicated specifically to corporate finance in many companies, as these figures might overestimate or underestimate the actual contribution based on varying industry standards and company sizes. Understanding this percentage helps in analyzing the influence of corporate finance on overall business performance and decision-making.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy