Answer to Question #33280 in Management for Anu Jaims

Question

What are the goals of financial management

Answer 1

The main three goals of the financial management are:
-to minimize business expenses (management determines the reasonableness and the ability of being affordable of costs, and then, finds methods to minimize costs (for example, cutting back, transforming service providers or choosing a cheaper plan). To succeed, organizations should do both earn revenues and control expenses);
-to increase market share and use it as best (the market size is often flux and the level of change is influenced by the market (whether it is mature or developing). The calculations of the market share provides a point of an organization’s size according with its market and competition area);
-to maximize profits (it is the most important goal of the financial management and the company – to make profits and keep them. There is the method to calculate an amount of money that an organization extracts from its whole revenue or sales – profit-margin ratios (gross, operating and net profit margins)).