What is financial management? What is the main objective of financial management?
Answers
hey
mate.
Financial management focuses on ratios, equity and debt. Financial managers are the people who will do research and based on the research, decide what sort of capital to obtain in order to fund the company's assets as well as maximizing the value of the firm for all the stakeholders
objective of finical management.
Profit maximization happens when marginal cost is equal to marginal revenue. This is the main objective of Financial Management.
Wealth maximization means maximization of shareholders' wealth. It is an advanced goal compared to profit maximization.[2]
Survival of company is an important consideration when the financial manager makes any financial decisions. One incorrect decision may lead company to be bankrupt.
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.
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
hope this help you
cheers
NANBA
Financial management is defined as dealing with and analyzing money and investments for a person or a business to help make business decisions. An example of financial management is the work done by an accounting department for a company.