To think critically about: The goal that must always motivate the financial manager’s action.
Introduction:
Some of the senior management includes the Vice President and other Chief Financial Officer (CFO). However, the Vice President of finance manages the activities of the controller and the treasurer.
The financial management’s goal is to gain money. However, a few possible financial goals are survival, to avoid bankruptcy or distress, to minimize the profits and costs, to maximize the sales, and to maintain the stable growth in the earnings.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Fundamentals of Corporate Finance
- Q2) Define the value maximization of firm goal and describe the relationship between this goal and financial decisions.arrow_forward1. WHY IS FINANCIAL PLANNING IMPORTANT IN THE SUCCESS OF AN ORGANIZATION?arrow_forward1. what is the efficient market hypothesis. What does it say, if any, about individual financialbehavior? 2. Differentiate between fundamental and technicalanomalies.arrow_forward
- 4. What are two trends in the company’s operations or capital resources that management considers significantto the company’s future?arrow_forwardCh. 14. Which one of the following is NOT an implication of market efficiency for corporate finance? Group of answer choices Managers can reap many benefits by paying attention to market prices Firms cannot successfully time issues of debt and equity Managers cannot profitably speculate in foreign currencies and other instruments Firms can successfully time issues of debt and equity Managers cannot fool the market through creative accountingarrow_forwardWhat goal should always motivate the action of a firm's financial manager?arrow_forward
- FE6 (a) Explain how financial ratio analysis of a firm’s projected cash flow budget could be efficiently used by its managers for financial planning. (b) Explain why creating budgets and other financial planning is an important part of business planning.arrow_forwardB1) Do you think capital budgeting is important? Justify? B2) List all the techniques of Capital Budgeting? You think are relevant today? B3) Do you think that these techniques are really helpful to financial managers B4) Do you think that these techniques can be used in situations like COVID-19? B5) According to you which technique is better and why?arrow_forwardSubject: Financial strategy & policy Question No 1 Which are the three core areas for which a financial manager is expected to devise a financial policy? Explain them with examples. How risk can be managed in those areas?arrow_forward
- 2. "Investment Decision”- One of the First principles in Corporate Management.- explainarrow_forwardwhich one is correct please confirm? QUESTION 22 In considering financial planning, the type of planning that focuses more on the overall direction of the business and the industry is _______. a. strategic b. deterministic c. operational d. probabilisticarrow_forward37: What is a venture banking firm? Which job does it play in corporate development and extension?arrow_forward