Financial Management
This Category is dedicated to provide articles related to Finance and Financial Management.
Sweat equity is the value added to an entity as a result of one’s work. No financial capital is paid in to add value. It can also be understood …
We have observed the evolution of the financial management objective from traditional approach of profit maximization to an improved concept of wealth maximization. Both the approaches have their pros …
The functions of financial management are guided by the ultimate aim of any business i.e. profit and wealth maximization. If we broadly classify the functions of a finance head …
Revenue and profit are two important parameters in any business. Revenue is the sum of money that a business generates from selling its goods or services whereas profit is …
Capital investment decisions of a firm have a direct relation with wealth maximization. All capital investment projects with an internal rate of return (IRR) greater than 1 or positive …
Stakeholder’s welfare is a superior corporate goal over shareholder’s wealth maximization. Stakeholder’s welfare looks after all the factors responsible for its success whereas the wealth maximization as an objective …
Historically, profit maximization has been given quite a lot of importance as the main objective of any business. But, in a practical scenario, revenue maximization holds true. Profit maximization …
Wealth maximization is a modern approach to financial management. Maximization of profit used to be the main aim of a business and financial management till the concept of wealth …
Profit maximization is the main aim of any business and therefore it is also an objective of financial management. Profit maximization, in financial management, represents the process or the …
The financial management has come a long way by shifting its focus from traditional approach to modern approach. The modern approach focuses on wealth maximization rather than profit maximization. …
