Wednesday, May 18, 2011

Goals of financial management

Objectives of the firm or corporation refer to the purpose for which the finance functions are carried on.The objectives provide criteria for financial decisions making. It is very much essential to have right goals for right financial decisions.Objectives provide guidelines for financial decisions and functions. hence , these objectives are also called as goal of the financial management or financial goal.so setting appropriate objectives is very much important for the sucessful operation of the firm. There are mainly two widely discussed objectives of a firm. They are as follows:
- Profit maximization
- Shareholders wealth maximization

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