Wealth maximisation

1.       What do you mean by wealth maximisation?

2.       Explain the concept of profit maximisation and wealth maximisation. Which of these, do you think, is a better operational guide for a finance manager?

3.       “Financial management is nothing but managerial decision making in asset mix, capital mix and profit allocation.” Comment.

4.       What are the objectives of finance function?

5.       Outline functional area of financial management.

6.       “Financial management is indispensable in any organisation”. Bring out its importance.

7.       Define business finance. Discuss aims and scope of finance function.

8.       Give an idea about the `wealth maximisation objective of financial management.

9.       “Wealth maximisation is only a decision criterion and not a goal.” Explain.

Solution:

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