Strategic Financial Management Coursework Example | Topics and Well Written Essays - 2000 words - 1

Strategic fiscal centering - Coursework ExampleHowever, among all these objectives, the main one for business organisations is supposed to be an increase of the note value to its shareholders. In this case, the bid to maximize the wealth of its shareholders becomes a fundamental goal of management. It is important to note that investors often have a bun in the oven earning satisfactory returns from the investments they establish in the firm.Shareholders are the actual owners of the business, which means that senior managers are have a responsibility to check out maximisation of investors wealth, not just for the success of the business, but also for act investments, thus gaining the ability to increase its market share and financial position. Maximizing this wealth can be determined by the payout of dividends as well as capital gains through an increasing market value for a particular share price of the business. In the process of achieving this objective, conflicts can sometime s arise in the business. In this case, business managers may end up making decisions based on their interests and not achieving the investors wealth. Therefore, traditionalistic view is that profit maximization needs to be made the ultimate goal and objective for the business.Financial managers are often involved in managing cash flows on behalf of the companies they work for as well as their respective owners. In any firm, financial management is often concerned with the process of making decisions in three main areas, which include investing, financing as well as dividend policy. In all these, wealth maximization always remains to be the fundamental goal for the firm. Business managers are expected to ensure that they effectively manage the stock prices for the benefit of their respective shareholders since they are needed towards increasing the financial muscles for the friendship so that it can achieve its other objectives (Kaen 2003, 87). In this case, the criticisms raised a gainst this