Objectives of financial management The objective of financial management may be broadly divided into two parts such as: 1. Profit maximization 2. Wealth maximization Profit maximization – The main aim of any kind of economic activity is to earn profit. A business concern also functions mainly to earn profit. Profit is the measuring technique to understand the business efficiency of the concern. Profit maximization is also the traditional and narrow approach, which aims to maximize the profit of the concern. Favorable arguments for profit maximization The following important points are in support of the profit maximization objectives of the business concern. 1. Main aim is earning profit. 2. Profit is the parameter of the business concern. 3. ...