Which of the following is not an objective of financial management? (2024)

FAQs

Which of the following is not an objective of financial management? ›

The goal of financial management is to maximize the company's value for its shareholders. This can be done by maximizing profits, minimizing costs, and ensuring the company's liquidity. Ensuring discipline in the organization is not an objective of financial management.

Answer and Explanation:

The correct option is (C) Provide information on the liquidation value of an enterprise.

The main financial objective of many companies is maximizing shareholder wealth, through increased share prices and high dividends, based upon high profits. Non-financial objectives relate to the employee satisfaction, customer satisfaction, corporate social responsibility and so on.

The primary and most important objective of financial management is to maximise the return on investment (ROI) in a way that fulfils the objectives of any firm while keeping the risks under control.

Ensuring excess availability of funds at the right time is not an objective of financial planning.

The goal of financial management is to maximize the company's value for its shareholders. This can be done by maximizing profits, minimizing costs, and ensuring the company's liquidity. Ensuring discipline in the organization is not an objective of financial management.

Non-financial aims and objectives. are linked to anything other than making money for the business. These are usually linked to personal reasons behind an entrepreneur. setting up a business.

achieve an optimal balance between profitability and risk which maximises owners' wealth.

A financial objective is a goal that businesses set for financial success and growth. A company's financial objectives can vary depending on multiple factors, such as the type of products and services it offers, how it operates and what its current requirements are.

Nonfinancial controls, such as those related to employee satisfaction, customer service, and so on, are an important and increasingly applied form of organizational control.

Which of the following is not a function of a financial manager? ›

forecasting requires from all the sources like production department, sales department and manufacturing department. therefore, forecasting is not a function of finance manager.

Financial managers perform data analysis and advise senior managers on profit-maximizing ideas. Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Answer and Explanation:

Financial accounting cannot directly measure the value of any business organization; it can only provide estimates that can be used for estimating the value of the organization in any accounting period.

Setting of heavy industries is not an objective of planning.

Cost is not a feature of financial planning as the plan deals with determining the cash flow of the organisation.

"The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant, reliable and comparable.

However, manipulating financial information to deceive stakeholders or evade taxes is not an objective of accounting. It is crucial to uphold ethical standards and ensure the integrity of financial information for the benefit of all stakeholders.

Answer and Explanation:

Financial accounting cannot directly measure the value of any business organization; it can only provide estimates that can be used for estimating the value of the organization in any accounting period.

1 Approved Answer. Following is not an objective of financial statements as expressed by the international accounting standards board: Answer: To provide information about the users of an entity's financial statements.