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Identify and explain what should be the primary financial goal of a company and what secondary goals can be pursued under what conditions?
Wiki User
∙ 14y ago
Primary goal: Earn of profit for shareholders/stakeholders. Secondary goals could include a certain percentage return on assets, sustainable growth, maintain a certain percentage of debt-to-equity ratio, etc. Conditions are subject to assumptions concerning the economy, such as the interest rates and tax rates.
Wiki User
∙ 14y ago
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How do primary and secondary financial markets differ?
In the primary financial market money goes directly to the person or company who will be spending it, for example, if a person/company takes a loan out of the bank they will spend it on certain products in the market. In the secondary financial market, already existing financial assets are transferred from one saver to another. For example, if you don't want to be a part owner in a company anymore, you can sell your share as a secondary financial asset on the stock market. A transfer in the secondary market does not represent any new saving.
How do primary and secondary markets differ?
In the primary financial market money goes directly to the person or company who will be spending it, for example, if a person/company takes a loan out of the bank they will spend it on certain products in the market. In the secondary financial market, already existing financial assets are transferred from one saver to another. For example, if you don't want to be a part owner in a company anymore, you can sell your share as a secondary financial asset on the Stock Market. A transfer in the secondary market does not represent any new saving.
Why would a business want to create discrepancy reports?
A discrepancy report may be created by a business to try and identify the reason for any errors or imbalances in their company's financial accounts. By creating such a report, the company may be able to identify, for example, a shortfall in their figures and from this, identify the missing or incorrect figure causing this discrepancy.
What are secondary stakeholders?
Secondary stakeholders also are important because they often can be primary stakeholders, too. For instance, people who live in the vicinity of a company care about the company's effects on the local environment and economy. However, those same people may be employed by the company or own stock in it, so they have a direct financial interest in it. Conversely, they can impact the company financially by pulling out their investments in it.
Do you need to obtain prior authorization from your secondary insurance even if the primary insurance will be billed first?
Your secondary insurance has different PA criteria than your primary insurance. A PA means that your insurer will only cover a service under certain circumstances; company A may cover a service for 3 conditions and company B may only cover the same service for only 2 conditions. Your primary could pay and your secondary may not.
Definition of Industrial sickness?
sick industrial company means a company fulfilling the following conditions: The company should have accumulated losses equal to or exceeding it's net worth at the end of any financial year.
What is debt-to-equity ratio?
Total liabilities divided by total assets.This ratio is used to identify the financial leverage of the company i.e. to identify the degree to which the firm's activities are funded by the owners money versus the money borrowed from creditors.The higher a company's degree of leverage, the more the company is considered risky.Formula:DER = Net Debt / Equity
How do you identify a private limited company?
A Private company which will not be listed under any Stock Exchange. If you see any private company website. You wont see any ticker symbol for that company. But in case of Public companies they have to list there financial status in the website for the public.
What is Secondary Marketing Data?
Secondary marketing data is data that has been collected and analyzed previously. Such secondary data can be previous market performances of competing company products or consumer buying behavior in financial publications. Secondary data is cost effective in market research due to the costs of evaluating and conducting such research already has been completed.
When was Projective - financial company - created?
Projective - financial company - was created in 2006.
Is a loan company not a financial intermediary?
true a loan company is not a financial intermediary
When you are interpreting financial ratios is it useful to compare a companys ratios to some form of standard?
Yes, comparing a company's financial ratios to some form of standard is useful in interpreting the ratios. It allows for benchmarking and provides context to understand whether the company's performance is above or below industry averages or competitor benchmarks. This comparison helps to identify strengths and weaknesses, and evaluate the company's financial health and performance.
