The primary objective of financial management is to maximize the profit of the organization . However, the organization also seeks to maximize the wealth and value by maximizing the returns to shareholders.
What are the main objectives of financial management?
- Profit Maximization. The basic objective of financial management is to achieve optimal profit, both in the short and long run. ...
- Proper Mobilization. ...
- Improved Efficiency. ...
- Business Survival. ...
- Balanced Structure.
What is the objective of financial management Mcq?
Explanation : The primary goal of the financial management is to maximize the wealth of owners . All businesses aim to maximize their profits, minimize their expenses and maximize their market share.
What is the objective of financial management quizlet?
The ultimate objective of financial management is to maximize the value of the entity, usually as reflected by the market price for the firm’s stock.
What is the concept of financial management?
Financial management may be defined as the area or function in an organization which is concerned with profitability, expenses, cash and credit , so that the “organization may have the means to carry out its objective as satisfactorily as possible;” the latter often defined as maximizing the value of the firm for ...
Which is not the main objective of financial management?
Maximization of wealth of shareholders .
What are the types of financial decisions?
- Financing Decision: ...
- Investment Decision: ...
- Dividend Decision: ...
- Working Capital Decisions:
Which is the function of financial control?
Accounting Oversight
A controller is in charge of making sure that all accounting distributions are properly made and accounted for. In smaller firms, the financial controller also performs cash managing roles and oversees accounts payable, receivable, disbursing of cash, payroll and bank settlement functions.
Which of the following are two basic concepts of financial management?
- Budgeting. One of the most important concepts of financial management is budgeting. ...
- Reporting. ...
- Cash Flow Management. ...
- Tax Planning. ...
- Debt Service.
Which is the determinant of capital structure decision?
Based on the data availability, the following determinants of capital structure are analysed in this paper: size, profitability, tangibility, growth opportunities, tax, non-debt tax shields, volatility, and industry classifica- tion .
What is the process of determining the present value called?
Discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future. ... Discounting is the primary factor used in pricing a stream of tomorrow’s cash flows.
What are the 3 types of financial management?
- Treasury and Capital Budget Management: ...
- Capital Structure Management: ...
- Working Capital Management: ...
- Financial Planning, Analysis and Control Management: ...
- Insurance and Risk Management:
What are the 3 scopes of financial management?
- Investment Decision: ...
- Financing Decision: ...
- Dividend Decision: ...
- Working Capital Decision:
What are the features of financial management?
- Analytical Thinking. Financial management deals with financial problems and analyzes them deeply. ...
- Carry out Decisions. ...
- Continuous Process. ...
- Designs Capital Structure. ...
- Check Financial Needs. ...
- Manage the Working Capital. ...
- Profit Maximization.
What are the 3 financial decisions?
- Investment Decision.
- Financing Decision and.
- Dividend Decision.
What are the principles of financial decision making?
- Organize Your Finances. ...
- Spend Less Than You Earn. ...
- Put Your Money to Work. ...
- Limit Debt to Income-Producing Assets. ...
- Continuously Educate Yourself. ...
- Understand Risk. ...
- Diversification Is Not Just for Investments. ...
- Maximize Your Employment Benefits.
