This chapter introduces key concepts in corporate finance. It discusses that corporate finance addresses three questions: what long-term investments to choose, how to raise funds for investments, and how to manage short-term assets. It also covers different business organizations like sole proprietorships, partnerships, and corporations. The goal of financial management is to maximize shareholder wealth. Agency problems can arise between managers and shareholders due to conflicting interests. Financial markets include primary markets for new securities and secondary markets for existing securities.