Objectives of Financial Management
While we have already discussed the definition of financial management, we will now discuss financial management's objectives.Funds are managed in a way so that earnings per share (EPS) or profits are maximized for the maximum results.To achieve this objective, such activities should be undertaken that help in increasing profits.It includes sourcing capital in an optimized manner and deploying these resources effectively towards projects.It is meant to ensure that an organization has enough funds to meet requirements such as maintaining operations, investment in new projects and maintaining operations.This includes the evaluation of fixed and current assets, marketing costs, buffer capital, etc.The operational concept of profitability is applied, which aims at profit maximization.Those actions that decrease profits are avoided.1.2.3.