Determine the objectives of the firm, Financial Management

Assignment Help:

Determine the Objectives of the Firm

Objectives of the Firm - Profit Maximisation and Wealth Maximisation

To put it simply, we may say that goal of any business is to maximise the returns to owners of the business. So the purpose of finance is to help the business in maximising returns. Though if you talk to the companies, you also hear about many other goals that they are following at the same time. These goals could comprise maximisation of market share,maximisation ofsales, maximisation of market price of the share (whether real or specifically pushed up to benefit the owners), maximisation ofthe growth rates of sales etc.  Individually speaking, managers would be more concerned with themoney that they are making from organisation and benefits that they are receivinginstead of care about what the owners are making!

 


Related Discussions:- Determine the objectives of the firm

Role of government notes and bonds in finance national debt, Explain the vi...

Explain the vital role of government notes and bonds in the finance national debt. Government notes and bonds are issued within the USA by the US Treasury to finance national d

Agency relationship, what are the ten agency problems between shareholders ...

what are the ten agency problems between shareholders and auditors and their solutions

Bond-equivalent yield, Normally, the cash flows from mortgage backed ...

Normally, the cash flows from mortgage backed and assets-backed securities are obtained on monthly basis. Therefore, the yield calculated would be on a monthly ba

Bond features that affect interest rate risk, Various bond feat...

Various bond features largely affect the degree of correlation between the bond's prices and the bond's interest rates. Some of the bond feature

Expalin npv decision rule in basril plc, The NPV decision rule needs that a...

The NPV decision rule needs that a company invest in all projects that have a positive net present value. This presumes that sufficient funds are available for all incremental proj

White knight, A friendly potential acquirer sought through a goal organizat...

A friendly potential acquirer sought through a goal organization threatened by a less welcome suitor.

Financial reform, The recent financial reform in the Public Sector that had...

The recent financial reform in the Public Sector that had been implemented in Fiji is essential. Critically evaluate this statement.

Passive management, In the efficient markets, whether it is sec...

In the efficient markets, whether it is security, equity or fixed-income markets it is believed that the investors use some type of passive strategy in

Abnormal earnings valuation model, A technique for knowing a company's wort...

A technique for knowing a company's worth that is based on earnings and book value. It is also known as the residual income model, it seems at whether management's decisions cause

Zero-volatility spread, The zero-volatility spread is a measure of th...

The zero-volatility spread is a measure of the spread that the investor would realize over the entire Treasury spot rate curve if a mortgage-backed or asset-backe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd