What goal should always motivate the actions of a firm's financial manager? (2024)

What goal should always motivate the actions of a firm's financial manager?

The ultimate goal of a financial manager is to maximize the shareholder's profits. Therefore, wealth maximization for the shareholders is what acts as a motivation for the firm's financial managers. A good financial manager aims at undertaking a project that will maximize the company's revenues and profits.

What goal should always motivate the actions of the firm's financial manager quizlet?

The goal that should always motivate the actions of the firm's financial manager is to maximize the current market value (share price) of the equity of the firm (whether its publicly traded or not).

What is the most important goal of a financial manager?

Typically, the primary goal of financial management is profit maximization. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits.

How do you motivate a financial manager?

Which of the following should be the goal of the financial manager?

The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock. A private company's value is the price at which it could be sold.

What goal should always motivate the actions of the firm's financial manager current market value share price of the equity?

What goal should always motivate the actions of the firm's financial manager? To maximize the current market value ( share price ) of the equity of the firm ( whether it's publicly traded or not ) .

What is the goal of the financial manager quizlet?

What is the goal of the financial manager? To maximize the wealth of the owners, the stockholders.

What is the role of financial manager and the goal of financial management?

The financial manager sets procedures regarding how the finance team will process and distribute financial data, like invoices, payments and reports, with security and accuracy. These written procedures also outline who is responsible for making financial decisions at the company — and who signs off on those decisions.

What is the proper goal for management of a firm?

The firm's mission statement may lead naturally to important financial goals such as to maximize profit, reduce costs and increase efficiency, manage or increase the firm's market share, limit the firm's risk, or maximize the owner's equity in the firm.

What is the importance of financial management?

Importance of Financial Management

Availability of sufficient funds. Maintaining a balance between income and expenses to ensure financial stability. Ensuring efficient and high ROI. Creating and executing business growth and expansion plans.

What should motivate a manager?

Highly motivated managers rather consistently characterize their supervisors as persons who are approachable and open-minded, maintain high expectations, provide ready access to company information, encourage initiative and risk taking, help them learn from mistakes, and give credit for top performance.

What is the importance of financial motivation?

An important role in the whole process is played by financial motivation, which is associated with financial expenditures borne by the company, but at the same time it is able to stimulate employees to work effectively.

How can a manager best encourage and motivate you answer?

Set clear goals and expectations

Clear goals and expectations give employees a clear direction and purpose. This clarity motivates them to stay focused on their tasks and contribute to achieving these goals. Without it, they're left unsure of how they're performing, with no clear path to improve their work.

What is the primary goal of management?

The primary goal of management is to create an environment that lets employees work efficiently and productively. A solid organizational structure serves as a guide for workers and establishes the tone and focus of their work. Managers are involved in implementing and evaluating these structures.

What is the most important duty of a firm's financial officer?

Option A is correct that is most important duty of a firms's financial officer is to make investment decisions.

What should be the primary goal of a financial manager profit maximization or maximization of shareholders wealth?

A firm's primary objective is the maximization of shareholders' wealth, but that doesn't mean its CEO should be focused on increasing his or her own wealth.

What is the financial manager's ultimate goal should be to the benefit of which stakeholders?

Answer and Explanation: The ultimate goal of a financial manager is to maximize the shareholder's profits. Therefore, wealth maximization for the shareholders is what acts as a motivation for the firm's financial managers.

Which among the roles of financial manager is the most important and why?

The financial manager's most important job is to make the firm's investment decisions. This, also known as capital budgeting, is the most important job for this type of manager. This individual has to look at and prioritize investment alternatives. Both costs and returns need to be assessed.

What are the three major functions of financial managers role of the financial manager?

Answer and Explanation: The three major functions of a finance manager are; investment, financial, and dividend decisions. Firstly, the investment decision entails determining assets that the firm needs or projects it needs.

What role should the financial manager play in a modern enterprise?

It's the financial manager's job to ensure that departments get the funds they need when they need them. It's also important to make sure that the department is requesting only funds they need for operations. That's where purchase requisitions, purchase orders, and automated approval workflows come into play.

What is the conclusion of financial management?

In conclusion, financial management is a guiding force that enables businesses to optimize their resources, make informed financial decisions, and achieve their profit objectives while maintaining long-term sustainability.

How does financial management impact a company's performance?

Financial management plays a key role in the success of any business. It lets you manage your company's finances effectively, make informed decisions, and plan for future growth. Strong financial management practices can help ensure your business remains financially healthy and sustainable.

What is the most important motivator for successful managers?

McClelland has argued that the high need for social power is the most important motivator for successful managers. Successful managers tend to be high in this type of nPow.

What motivates a manager at work?

A new study by researchers at the Center for Creative Leadership (CCL) and Clark University reveals that the most effective way to motivate managers is by providing “intrinsic rewards” such as psychological well-being, joy, learning and fulfillment.

How do you motivate a team as a manager?