What is the ultimate concern of financial management? (2024)

What is the ultimate concern of financial management?

The ultimate concern of Financial Management is: to arrange the funds. effective management of all the business. receiving the maximum profit.

What is the main concern of financial management?

Financial management is the business function concerned with profitability, expenses, cash and credit. These are often grouped together under the rubric of maximizing the value of the firm for stockholders.

What is the ultimate goal of financial management?

Typically, the primary goal of financial management is profit maximization. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits. This has the greatest benefit for company shareholders hoping for the highest possible return on their investment.

What is the primary concern of the financial manager?

Financial managers perform data analysis and advise senior managers on profit-maximizing ideas. Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

What is the ultimate concern of financial management mcq?

The correct answer is Wealth maximization. Basic objective of financial management is Wealth maximization. It is concerned with optimal procurement as well as the usage of finance. It aims at reducing the cost of funds procured, keeping the risk under control and achieving effective deployment of such funds.

What is financial management mainly concerned with quizlet?

Financial management is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

What is the main goal of financial management quizlet?

1.3 What is the goal of financial management? The goal of financial management is to maximize the current value per share of the existing stock.

Which is a superior goal of financial management Why?

Value maximization is considered the primary goal of financial management as it takes into account not only profits but also long-term sustainability and growth of the company.

What is the importance of financial management?

Importance of Financial Management

Availability of sufficient funds. Maintaining a balance between income and expenses to ensure financial stability. Ensuring efficient and high ROI. Creating and executing business growth and expansion plans.

What three major decisions are of most concern to financial managers?

When it comes to managing finances, there are three distinct aspects of decision-making or types of decisions that a company will take. These include an Investment Decision, Financing Decision, and Dividend Decision.

What decisions are financial management concerned with?

There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions. In this article, we will discuss the different types of financial decisions that are taken in order to manage a business's finances.

What is financial market mainly concerned with?

Price determination: Financial markets allow for the determination of price of the traded financial assets through the interaction of buyers and sellers. They provide a sign for the allocation of funds in the economy based on the demand and to the supply through the mechanism called price discovery process.

What is the primary goal of financial management is to maximize group of answer choices?

Answer and Explanation:

The primary goal of financial management is to: B) maximize the current value per share of the existing stock . The most important goal is to maximize the value of existing stock, which in turn maximizes the per share value.

What are the two main objectives of financial management?

The objectives of financial management are as follows: Profit maximisation. Mobilisation of finance in a proper way. Ensuring the company's survival.

What is the most important financial management decision?

Investment Decisions

These decisions are considered more important than financing and dividend decisions. Here, the decision is taken regarding how investment should occur in different asset classes and which ones to avoid. It also involves whether to go for short term or long term assets.

Which is the cheapest source of finance?

Retained earning is the cheapest source of finance.

What is the conclusion of financial management?

In conclusion, financial management is a guiding force that enables businesses to optimize their resources, make informed financial decisions, and achieve their profit objectives while maintaining long-term sustainability.

What are the three basic functions of a finance manager?

What is the difference between finance and financial management?

Finance involves managing the firm's money. The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing. The financial manager's responsibilities include financial planning, investing (spending money), and financing (raising money).

What is financial management about mcq?

Financial Management is a study of planning, designing, directing and managing the economic activities such as the utilization of capital and acquisition of the firm. To put it in other words, it is applying general management standards to the financial resources of the firm.

What is management accounting primarily concerned with mcq?

The correct answer is Accounting for future. Management accounting is accounting for future. Management accounting. ​It can be used in short-term and long-term decisions involving the financial health of a company.

What are the main functions of financial management Mcq?

1 Answer. Main function of financial management is Financial planning, Procurement fund and Allocation of net profit.

What is financial management quizlet?

financial management (corporate finance) focuses on decisions relating to how much and what types of assets to acquire, how to raise the capital needed to purchase assets, and how to run the firm so as to maximize its value.

What is in a financial management?

Financial management is all about monitoring, controlling, protecting, and reporting on a company's financial resources. Companies have accountants or finance teams responsible for managing their finances, including all bank transactions, loans, debts, investments, and other sources of funding.

What does financial management talk about?

Financial management is about controlling the flow of money in and out of the organization. Every business needs to sell products or services, pay expenses, balance the books, and file taxes.