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Wealth maximization is a term that refers the process done by business that brings in high returns. For instance, making investments is an example of wealth maximization.

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Q: What is wealth maximization in financial management?
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What are the basic objectives of financial management?

The objective of financial management is wealth maximization rather than profit maximization. Wealth maximization means the total value of the firm.


Explain wealth maximization and value maximization objectives of financial management?

Wealth maximization of financial management focuses on increasing fixed and current assets while value maximization focuses to strengthen intangible assets.


What is the wealth maximization?

Wealth maximization is a modern approach to financial management. It is also known as Value Maximization. The focus of financial management is on the value to owners or suppliers of equity capital. The wealth of owners is reflected in the market value of shares so wealth maximization implies the maximization of the market value of the shares or it simply means maximization of shareholder's wealth.


What is a wealth maximisation?

Wealth maximization is a financial investment management tool that helps businesses increase profits and net worth. In addition, company shareholders are able to receive a higher return from their investment.


Profit maximization vsealth maximization in financial management of an organization?

Profit maximization is also about increasing the EPS (earning per share) of the shareholders and to maximise the net present worth. Main objective of co is profit maximization EPS: net profit/ no of shares outstanding. Wealth maximization is anything having value. Anything which can be expressed in money value or economic value which is considered as wealth. Baisc objective of a co is wealth maximization. How to increase the wealth: By producing a quality product at a competitive rate. By giving product at reasonable price. Good after sales service. this all things leads to increase in co's wealth.


What are the primary objectives of financial managers?

The success or failure of a company, is highly dependent on its ability to effectively manage and increase its value ever fiscal year. The implicit financial management goals for managers and directors of a company, is to run in the interest of shareholders and shareholder wealth for long term profitability.


What is wealth in in the term wealth maximization?

.


What is the problems of wealth maximization?

the problems of wealth maximization is the minimumization of wealth minimumization...ask me no more thats final......,


Are wealth maximization and profit maximization related?

Not necessarily


How far do you justify the objective of wealth maximization?

wealth is a resource in the production of goods & services in any economy.The maximization of wealth is a long term policy and would mean a higher utilization/employment of resources to bring about a higher level of national income. In any business wealth maximization is a long term financial effort to help and benefit the business environments & the all components in it.


Explain why management may tend to pursue goals other than shareholder wealth maximization?

The management may pursue goals other than wealth maximization in order to stay competitive and expand. The company may temporarily stop chasing shareholder wealth maximization in order to make their future benefits secure. That happens by diverting dividends or profits to upgrading systems, reinvesting in new technology and doing research.


What is meant by the goal of maximization of shareholders wealth?

The goal of maximization of shareholder wealth is meant by; first, in most cases