{"id":21121,"date":"2015-01-02T04:32:42","date_gmt":"2015-01-02T04:32:42","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=21121"},"modified":"2024-04-03T13:22:50","modified_gmt":"2024-04-03T07:52:50","slug":"goals-of-a-firm-for-financial-management","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/goals-of-a-firm-for-financial-management\/","title":{"rendered":"GOALS OF A FIRM for Financial management"},"content":{"rendered":"

\"goals-of-a-firm-for-financial-management\"<\/a><\/p>\n

INTRODUCTION-<\/strong>Any corporation or a firm invest in assets which can be of two types\u00a01)<\/strong>Those are\u00a0tangible \u00a0 \u00a02)<\/strong><\/em>\u00a0<\/strong>Those are\u00a0intangible.<\/strong><\/em><\/p>\n

Tangible<\/strong><\/em>\u00a0<\/strong>assets are like machinery or the land etc .Intangible<\/strong><\/em>\u00a0<\/strong>assets are like brand names and patents.<\/p>\n

Now comes the question\u00a0How corporations Finance these assets or how they actually buy it?\u00a0<\/em>The answer to this is by either borrowing money from the bank or by using its cash flow or by selling additional shares of the stock to the shareholders and raising the money.
\n<\/em><\/p>\n

THE PRIMARY GOAL OF ANY FIRM<\/strong>\u00a0is to maximize its assets that would in turn maximize the entire valuation of the firm and establish the trust of the investors and the shareholders in the credibility of the firm.<\/em>A large corporation may have hundreds of thousandsof shareholders. These shareholders differ in manyways, such as their wealth, risk tolerance, and investment capability. Yet we will see that they usually endorse the\u00a0same financial goal: they want the financial managers\u00a0<\/em><\/em>to increase the value of the corporation and its current\u00a0<\/em><\/em><\/em><\/em><\/em><\/em>stock price.<\/em><\/em><\/em><\/em><\/em><\/em><\/em>Thus the secret of success in financial management\u00a0<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em>is to increase value. That is easy to say, but not very\u00a0<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em>helpful. Instructing the financial manager to increase\u00a0<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em>value is like advising an investor in the stock market to<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em>\u201cbuy low, sell high.\u201d\u00a0<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em>
\n<\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/em><\/p>\n

To actually be able to do it is not easy and requires a very good understanding of the financial resources of your corporation and the financial environment of the Financial markets.<\/p>\n

Click here for government certification in Accounting, Banking & Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

INTRODUCTION-Any corporation or a firm invest in assets which can be of two types\u00a01)Those are\u00a0tangible \u00a0 \u00a02)\u00a0Those are\u00a0intangible. Tangible\u00a0assets are like machinery or the land etc .Intangible\u00a0assets are like brand names and patents. Now comes the question\u00a0How corporations Finance these assets or how they actually buy it?\u00a0The answer to this is by either borrowing money…<\/p>\n","protected":false},"author":600,"featured_media":21143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1519],"tags":[1584],"class_list":["post-21121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-banking-and-finance","tag-financial-management"],"acf":[],"yoast_head":"\nGOALS OF A FIRM for Financial management - Vskills Blog<\/title>\n<meta name=\"description\" content=\"What is Financial management and it's relevance\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/blog\/goals-of-a-firm-for-financial-management\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GOALS OF A FIRM for Financial management - 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