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  Objectives of Financial Management It can be explained from two points of view- Macro level & Micro Level Macro-level theory says the whole society is benefited. On the contrary, according to micro-level theory, the financial objective is determined as per the individual view point of a company, firm or enterprise. There are two mutually opposite thought regarding objective of financial management at Micro -level. A. Profit Maximization (P.M.O.) objectives B. Wealth Maximization (W.M.O) objectives 1. PROFIT MAXIMIZATION OBJECTIVES The objective of financial management of an enterprise is to maximize the profit. Financial Manager should select that alternative which may maximize the profit. In other words, all such actions which increase the profit should be undertaken and those which reduce the profit should be avoided. For maximizing the profit either production is to be maximized from limited resources or cost should be minimized for a particular level of producti...

  Meaning of Financial Management In the organisation,we have many departments. The key department is the finance department. Because finance is the blood of the organisation. Financial management is the strategic planning, organizing, and controlling of an organization's or individual's financial resources. Its core purpose is to efficiently allocate funds to achieve strategic goals, maximize profitability, and ensure long-term sustainability while managing risk. Financial Management is all about planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Definition   “Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.”- Massie and Joseph. “ FM deals with procurement of funds and thei...