An essential component of general management is financial management. It is focused on the responsibilities of the business firm's economic managers.
Financial Management Goals
Financial resources are appropriately used by the business when procured and utilized effectively. It is the financial manager's most important component. Therefore, the financial manager must decide what the fundamental goals of financial management are. The two main features of financial management objectives include:
1. maximizing profit
2. Maximizing wealth.
To maximize profits
Profit is the primary goal of all economic activities. A company firm also operates primarily to make money. Profit is a metric used to gauge a company's operational effectiveness. Another common and limited strategy is profit maximization, which tries to increase a company's profit as much One of the contemporary strategies incorporating the newest advancements and advances in commercial concern is wealth maximization. The term "wealth" refers to shareholder money or the personal wealth of those involved in the firm.
Value or net present worth maximization are other names for maximizing wealth. In the sphere of business, this purpose is a widely acknowledged idea as possible.
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