Functions of financial management

Reference no: EM13826567

Problem:

Explain why profit maximization is not the best goal for a company. What is an appropriate goal and why?

Additional Information:

The main functions of Financial Management are Profit maximisation, Wealth Maximisation and Cost minimisation etc. But is profit maximisation the best goal of a company? No, it is not, though earning profit is important for a business to continue or sustain, or for further reinvestment, or as said 'ploughing back the profit', it is not always the best goal. This has been further explained in the solution.

Total Word limit: 446 Words

Reference no: EM13826567

Questions Cloud

Difference between product and brand : Difference Between Product And Brand

Discuss future directions for location theory : The problem is belongs to Economics. The problem is about location theory. Location theory is concerned about the location of economic activity.

Many state governments categorize controlled substances : Explain how the U.S. and many state governments categorize controlled substances into Schedules I-V. In which Schedule is marijuana classified

Describe the various types of economic instruments : These problems related to Economics, mainly macroeconomics. These problems are about economic instruments. Economic instruments are mainly used for environmental protection.

Functions of financial management : Explain why profit maximization is not the best goal for a company. What is an appropriate goal and why?

Report on business plan proposal for new online business : Report On Business Plan Proposal For New Online Business

Develop special treatments for the dual-diagnosed clients : You are researching and developing special treatments for the dual-diagnosed clients who you will be treating at your new facility. There are many combinations of this type of client; one example would be a client with alcoholism and a depressive ..

Discuss relationship between mcgregor theory x and y : Discuss the possible relationship between McGregor's Theory X and Y with scientific management

Explain contingent valuation methods of non-market goods : The problem is belongs to Economics, particularly to macroeconomics. The problem is about the valuation methods of non-market goods and an example involving the same.

User Account

All Pages