objectives of business finance pdf


What are the objectives of business?

    •Every business is a process of acquiring and disposing assets: – Real assets (tangible and intangible). – Financial assets. •Two objectives of business: – Grow wealth. – Use wealth (assets) to best meet economic needs. •Financially, a business decision reduces to valuation of assets. •Valuation is the central issue of ?nance.

What do you mean by finance?

    •Finance is about the bottom line of business activities. •Every business is a process of acquiring and disposing assets: – Real assets (tangible and intangible). – Financial assets. •Two objectives of business: – Grow wealth. – Use wealth (assets) to best meet economic needs. •Financially, a business decision reduces to valuation of assets.

What are the 4 objectives of a financial manager?

    4 Objectives of Financial Manager 1. Factors a?ecting a ?rm’s?nancialobjective: •Timing? •Risk? •Accounting? •“Long-run” value? 2. Maximizing current market value is the only plausible ?nancial objective. 3. Current market value incorporates present value of all current and future cash ?ows, adjusted for timing and risk. 4.

What are shareholders' financial objectives?

    Shareholders’ ?nancial objectives: (a) Increase of total wealth (b) Right allocation of wealth over time (c) Right allocation of wealth over future contingencies. 2. Shareholderscando(b)and(c)ontheirown, through?nancial markets.
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