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Financial Management - Assignment Sample

   

Added on  2021-02-21

6 Pages1381 Words22 Views
FINANCIALMANAGEMENT
Financial Management - Assignment Sample_1
TABLE OF CONTENTSRelationship Between financial objectives, corporate objectives and corporate strategy...............1Government economic policies in planning and decision making in business. ..............................2REFERENCES................................................................................................................................4
Financial Management - Assignment Sample_2
Relationship Between financial objectives, corporate objectives and corporatestrategyFinancial management refer top managing finances of an organisation with intent of achievingfinancial objectives of organisations. General assumption in private sector about financialmanagement of company is of maximising wealth of shareholders. Decision of financialmanagement covers decisions related to investment, financing, dividends and related to riskmanagement. Where financial control refers to functions of financial manager that are relevantfor funding of organisation. Efficient usage of available assets, for this financial managers ofcompanies compare data of company on actual with forecasted performance. Financialmanagement are generally for long tenure of company. It involves forecast future and is requiredwith much external informations (Pratt, (2016)).Financial objective of most organisations is of making profit and as these earnings are passedover ton shareholders and owners and is known as maximising shareholder's wealth. Primaryobjectives of any company is of maximising shareholder. Financial management's fundamentalprinciple is to maximise the wealth of shareholder. Another financial objectives of managementis of satisfying different objective of stakeholder at same time. Financial objectives are thereforedeals with financial management of resources of company maximising the wealth oforganisations. Financial manager are required to decide about strategies which are essential forraising finance for companies, capital investments and to mange working capital. Corporate objective refers to realistic and well defined goal that are set by companies forinfluencing internal strategic decision. Mostly corporate objectives include times that will usedfor achieving the targeted objectives. They also assess how efficiently the objectives will beachieved by company. Corporate objectives take an organisation as whole and are set by topbusiness executives and these objectives provide more focus on setting detailed objectives relatesto major functional objectives of business. For running business profitably specific steps arerequired to be taken by management for framing effective corporate objectives. Making profits isnot only the objective of any business maintaining and achieving growth is also required to bemade by company. Corporate objective include making plans for pricing, specific revenues andmaking cost control measures that will also help in making financial objectives of company.Corporate objective focus over expected results and performance of business. It is essential thatcorporate objectives cover a wide range of areas where company is desired of achieving better1
Financial Management - Assignment Sample_3

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