What are the primary objectives of financial managers?

Answer 1

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.

Answer 2

Provide support for decision making. Financial management provides managers with the information and knowledge they need to support operational decisions and to understand the financial implications of decisions before they are made. It also enables managers to monitor their decisions for any potential financial implications and for lessons to be learned from experience, and to adapt or react as needed.

Ensure the availability of timely, relevant and reliable financial and non-financial information. Financial management gives managers the information that either forms the basis for calculating financial information, or is used for management control and accountability purposes.

Manage risks. Financial management enables an organization to identify, assess and consider the financial consequences of events that could compromise its ability to achieve its goals and objectives and/or result in significant loss of resources. Financial management is an important component of risk management and needs to be considered with the full range of business risks, such as operational and strategic risks as well as social, legal, political and environmental risks.

Use resources efficiently, effectively and economically.Financial management is necessary to ensure that an organization has enough resources to carry out its operations, and that it uses these resources with due regard to economy, efficiency and effectiveness.

Strengthen accountability. Financial management is essential for an organization to understand and demonstrate how it has used the financial resources entrusted to it and what it has accomplished with them.

Provide a supportive control environment. Financial management contributes to promoting an organizational climate that fosters the achievement of financial management objectives - a climate that includes commitment from senior management, shared values and ethics, communication and organizational learning.

Comply with authorities and safeguard assets. Financial management is essential to ensuring that an organization carries out its transactions in accordance with applicable legislation, regulations and executive orders; that spending limits are observed; and that transactions are authorized. It also provides an organization with a system of controls for assets, liabilities, revenues and expenditures. These controls help to protect against fraud, financial negligence, violation of financial rules or principles and losses of assets or public money.

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

There is difference between questions "what is the objective of financial management?" and "what are the objective of financial management ?"

The answer for 1st question is very easy :- the main objectives of financial management are :- Profit maximization , Maximization of earning per share , High growth rate of revenue , Maximization of Return on Equity, Maximization of return on equity , maximizing current share price, maximizing intrinsic value of share etc.

The 2nd question arises because all the objectives can not be completed simultaneously so we need to find a Major objective of financial management that objective can be "Maximizing value of the firm."

Answer 3

Financial Managers are responsible for protecting and maintaining a fair and due process of financial procedure in an institution or business corporation, as well as handling financial assets and management, systems and planning.

Answer 4

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

Answer 5

To Maximize shareholder wealth.

Answer 6

- Maximizing Shareholder's wealth

Answer 7

six major objectives of healthcare financial management.