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Objectives of financial management
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Objectives of financial management
1 Profit maximization happens when marginal cost is equal to marginal revenue. This is the main objective of Financial Management.2 Wealth maximization means maximization of shareholders' wealth. It is an advanced goal compared to profit maximization.3 Survival of company is an important consideration when the financial manager makes any financial decisions. One incorrect decision may lead company to be bankrupt.4 Maintaining proper cash flow is a short run objective of financial management. It is necessary for operations to pay the day-to-day expenses e.g. raw material, electricity bills, wages, rent etc. A good cash flow ensures the survival of company.5 Minimization on capital cost in financial management can help operations gain more profit.It is vague :- There are several types of profits before interest, depreciation and taxes,profit before taxes , profit after taxes , cash profit etc
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Objectives of financial management
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Objectives of financial management for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Objectives of financial management covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Objectives of financial management.
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