Nature and Goal of Financial Decisions


To explain the nature of corporate financial decisions

To explain factors—both microeconomic and macroeconomic—influencing financial decisions

To analyse the concept of profit maximisation as the goal of financial decisions

To explain and appraise the concept of maximisation of corporate wealth as a more appropriate goal of financial decisions

Finance lies at the root of economic activity. In the corporate form of organisation, financial decisions play a significant role in the management of operations. It is, therefore, significant to know what financial decisions really mean, what factors influence such decisions and what ultimate objective they have. These issues are explained here at ...

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