Category: FINANCIAL MANAGEMENT

Wealth Maximization Objective is also known as “Value Maximization” or “Net Present Worth Maximization.” This objective is considered appropriate for decision making. Wealth means the wealth of shareholders. The wealth of shareholders is determined by the market value of shares. Wealth also signifies Net Present Value(NPV) which is the difference between the present value of cash inflows and the present Read More …

Profit Maximization is implied objective of any business activity. Every business activity is started with the ultimate aim of making profit. Profit maximization objective of financial management means that all financial decisions are made with a view to maximize profit of the firm with all its investments and savings. This objective helps in measurement of economic performance and efficiency of Read More …

In an organization, finance department takes control over the  decisions related to finance. The finance department  has to coordinate with other department such as production, marketing etc. Financial management covers a wide area with multidimensional acivities which are needed to cooperate with each other to achieve financial goals. Following are the scope of financial management 1. Financial Management and Economics : Read More …

finance function is concerned with the functions of procuring funds, investing them into profitable projects and distributing the returns earned from those investments. Thus, Finance Function includes Investment Decision: This decision is also known as Capital Budgeting Decision. It is concerned with the evaluation and selection of proposals for long-term investments. The returns from these proposals are expected in the Read More …