The goal of Financial Managements

A definition of the goal is important because it leads to an objective basis for making and evaluating financial decisions. The main goal of financial Managment is to make money and add value for the owners. We can say some possible goals like:

• Survives

• Avoid financial distress and bankruptcy

• Beat the competition

• Maximize sales and market share

• Minimize costs

• Maximize profits

• Maintain steady earnings growth

In fact, we have defined as a study of the relationship between business decision, cash flow and value of the stock in the business. Therefore, a more general way of goal is Maximize the value of the owners’ equity.