The Main objectives of Financial Management are:
1)Profit maximization: The main objective of financial management is profit maximization. The finance manager is responsible to assist in earning maximum profits for the Business organization.
2)Wealth maximization: Wealth maximization means Shareholders’ value maximization.it means to earn maximum wealth for the shareholders. The market value of the shares should be directly related to the performance of the company.So,the finance manager must try to maximize shareholders’ value.
3)Maintaining proper cash flow: The company must have a proper cash flow to pay the day-to-day expenses such as purchasing of raw materials, payments to salaries, rent, light bills, etc. If the company has good cash flow, it can take advantage of many opportunities such as taking cash discounts on purchases, large-scale purchasing, giving credit to customers etc.
4)Creative Goodwill:Financial management must try to create goodwill for the company. It must improve the image and reputation of the company.Goodwill helps the company to survive in the short-term and succeed in the long-run.
5)Efficiency: Financial management should facilitate increasing the efficiency of all the departments of the company. Proper distribution of finance to all the departments will increase the efficiency of the entire company.
Financial Management 