Checkpoint: Financial Management Goals Essay

It is sometimes suggested that the most important goal for monetary counsel is to earn the highest possible profit for the company. However, the key is to use that in setting a goal for the firm. The main measure of performance is how the compensation are cherishd by the investor. It is important to an investor how the firms earnings have increased or decrease, the quality, reliability and risk of it. The financial carriage must take all of these into considerations when making each decision on the firms overall valuation.The financial charabanc may commence to maximise the wealth of the firms shareholders by getting the highest value for the firm. Stock prices are not directly controlled by the financial manager since it is generally affected by the expectations of the firms future as well as the current economic environment. In some instances, management may be more interested in maintaining its own elevate than in maximizing stockholder wealth. The goal of shareholder we alth maximation is consistent with a concern for social responsibility for the firm.By adopting policies that would maximize values in the market, the firm can attract capital, provide employment, and put forward benefits to its community. Another importance is the ethical behavior of a company because it creates an valuable reputation. Companies can become more visible than others in their pursuit of these goals. The companies that do a good job at practicing ethical behaviors are profitable, pitch money, and are good citizens in their communities.