What is the goal of financial management?
Understand the Problem
The question asks to identify the primary goal of financial management from a list of options. It touches upon core concepts of finance, particularly concerning shareholder value and company objectives.
Answer
The goal of financial management is to ensure a company's financial success, compliance, and growth by optimizing resources and maximizing profitability.
The goal of financial management is to handle a company's finances to ensure success and compliance, optimize resources, maximize profitability, control costs, maintain liquidity, create wealth for stakeholders, and ensure sustainable growth.
Answer for screen readers
The goal of financial management is to handle a company's finances to ensure success and compliance, optimize resources, maximize profitability, control costs, maintain liquidity, create wealth for stakeholders, and ensure sustainable growth.
More Information
Financial management is crucial for businesses of all sizes as it provides the framework for making informed financial decisions, managing risk, and ensuring long-term sustainability.
Tips
A common mistake is focusing solely on profit maximization without considering other important aspects such as liquidity, risk management, and stakeholder value.
Sources
- Financial Management Explained: Scope, Objectives & Importance - netsuite.com
- Objectives of Financial Management: 10 Primary Goals - Fincart - fincart.com
- What Should Be the Primary Goal of Financial Management? - educounting.com
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