What is the main goal of a financial manager? (2024)

What is the main 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.

What's the main goal of a financial manager quizlet?

The goal of a financial manager is to maximize the wealth of the shareholders (they implement this by maximizing the value of the company's assets). It is the correct goal because shareholders are the owners of the firm.

What is the primary goal of the financial manager is to select the best response?

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 is the goal that financial managers are tasked with?

The goal that financial managers are tasked with is to maximize the market value of the company.

Is the goal of a financial manager to maximize revenues?

Answer and Explanation: The correct answer is d) maximize shareholder wealth. The primary objective of the financial manager is to focus on adopting techniques, methods, and strategies that will enhance the value of the company's stocks which in turn help to maximize the wealth of the company's shareholders.

Which is a superior goal of financial management Why?

Value maximization is considered the primary goal of financial management as it takes into account not only profits but also long-term sustainability and growth of the company.

What is the most important goal of financial management Mcq?

The correct answer is Wealth maximization. Basic objective of financial management is Wealth maximization. It is concerned with optimal procurement as well as the usage of finance.

What is the most important decision of a financial manager?

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.

What is the best part of being a financial manager?

You Can Shape the Future of an Organization

As the manager of an organization's finances, you have considerable power to determine the organization's future. With smart management of cash and investments, you can set up a company for long-term success (and help its employees enjoy long-term success as well).

What is the cheapest source of finance?

Retained earning is the cheapest source of finance.

What decisions do financial managers make?

There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions. In this article, we will discuss the different types of financial decisions that are taken in order to manage a business's finances.

Which of the following is the least important of the financial manager's responsibilities?

Expert-Verified Answer. Among the options provided, keeping an up-to-date record of past operations (option A) is generally considered the least important of the financial manager's responsibilities.

What are the five functions of chief financial manager?

CFOs are at the helm of financial management, overseeing all aspects of an organization's financial function. This includes managing budgets, monitoring cash flow, optimizing capital structure, and ensuring effective utilization of financial resources to enhance profitability and drive growth.

What are the two main objectives of financial management?

The objectives of financial management are as follows: Profit maximisation. Mobilisation of finance in a proper way. Ensuring the company's survival.

What is the ultimate concern of financial management?

The ultimate purpose of Financial management is: to get a maximum return. to increase the wealth of owners.

What is financial responsibility?

Financial responsibility means being prepared for the unexpected. Most experts agree that you need to be able to support yourself financially for at least six months without an income.

What are the three basic questions addressed by a financial manager?

1. The three basic questions a financial manager must consider are capital budgeting, capital structure, and working capital management. Capital budgeting is the process where the financial manager tries to identify investment opportunities that are worth more to the firm than they cost to acquire.

What is the attitude of a finance manager?

They must be polite, empathetic and good listeners, in a supervisory role or when working with other teams in your company. One of the key aspects of a Finance Manager's job is to be an expert in time and project management.

What is the success rate of financial managers?

80-90% of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.

What personality is a financial manager?

Financial managers score highly on extraversion, meaning that they rely on external stimuli to be happy, such as people or exciting surroundings. They also tend to be high on the measure of conscientiousness, which means that they are methodical, reliable, and generally plan out things in advance.

Which of the following is the most important objectives of financial management?

The paramount objective of the financial management is maximising the shareholders' wealth.

What is the main objective of financial management why it is better than profit maximization?

The ultimate objective of any business is to earn a huge amount of return in terms of profit. Thus, this objective of financial management considers all the possible ways to increase the profitability of the business concern.

What is the more general financial management goal of the corporation and why is the goal preferable to the goal of profit maximization?

In contrast to a singular focus on profit maximization, the modern goal of financial management in a corporation is typically centered around maximizing shareholder wealth. This goal acknowledges that shareholders are the owners of the company and are interested in the long-term value generated by their investments.