Financial objectives of a firm must be set within and in congruence with the Corporate Mission & Goals of the business. Most of the organizations, irrespective of the form, seek to maximize immediate Profit for survival and growth. This provides immediate return also to the share holders in the form of better dividend and it increases the value of the share in the stock market. Many firms look for improving the value of the firm including profit maximization, as the objective. So, essentially we have two major financial objectives:
- Profit Maximization
- Wealth Maximization
The management of an organisation generally involves the three overlapping and interlinking roles of strategic management, risk management, and operations management. Financial management supports these roles to enable management to achieve the financial objectives of the shareholders. The corporate finance function assists in the way that financial results are reported to the users of financial information, for example shareholders, lenders, and employees.
