Finance

Criticisms of Profit Maximization Objectives

Criticisms of Profit Maximization Objectives

Criticisms of Profit Maximization Objectives Profit maximization is the main aim of any business and therefore it is also an objective of financial management. Although profit maximization objective is a widely known objective of a firm, some theorists have raised doubts about the validity of thi.....

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Concept of Wealth Maximization Objective

Concept of Wealth Maximization Objective

The concept of Wealth Maximization objective of a Company – The wealth maximization objective is almost universally accepted the goal of a firm. Maximization of profit used to be the main aim of a business and financial management till the concept of wealth maximization came into being. Acc.....

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Decision Process of Wealth Maximization Objective

Decision Process of Wealth Maximization Objective

Prime Decision Process of Wealth Maximization Objective of a Company – Wealth maximization is a modern approach to financial management. It simply means maximization of shareholder’s wealth. The shareholder wealth maximization goal states that management should seek to maximize the pres.....

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Relationship of Corporate Finance with Accounting

Relationship of Corporate Finance with Accounting

Finance is concerned with the acquisition and use of the firm’s financial resources. It is an integral part of the overall management. Therefore, it should be studied along with other disciplines. It is because finance derives heavily the conceptual and analytic foundations from other di.....

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Relationship of Corporate Finance with Economics

Relationship of Corporate Finance with Economics

Finance is concerned with the acquisition and use of the firm’s financial resources. It is an integral part of the overall management. Therefore, it should be studied along with other disciplines. It is because finance derives heavily the conceptual and analytic foundations from other di.....

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Types of Financial Markets

Types of Financial Markets

Financial markets are the place where the transaction of financial instruments and services are taking place. It is a broad term describing any marketplace where trading of securities including equities, bonds, currencies and derivatives occur. It plays a crucial role in allocating limited resou.....

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Concept of Financial Markets

Concept of Financial Markets

Financial Markets The financial environment consists of financial markets, financial institutions, financial instruments and services. Financial markets are the place where the transaction of financial instruments and services are taking place. It is a broad term describing any marketplace where .....

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Concept of Financial Institutions

Concept of Financial Institutions

The concept of Financial Institutions – Financial institutions are organizations that deal with a transaction of financial claims and financial assets. It is an establishment that conducts financial transactions such as investments, loans, and deposits. They issue financial claims against .....

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Non-depository Institutions of Financial Institutions

Non-depository Institutions of Financial Institutions

Non-depository Institutions of Financial Institutions In the financial market, there are many types of financial institutions or intermediaries exist for the flow of funds. Some of them involve in a depositary type of transactions whereas other involve in a non-depositary type of transactions. No.....

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Depository Institutions of Financial Institutions

Depository Institutions of Financial Institutions

Depository Institutions of Financial Institutions In the financial market, there are many types of financial institutions or intermediaries exist for the flow of funds. Some of them involve in depositary type of transactions whereas other involve in non-depositary type of transactions. Depository.....

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Liquidation Value

Liquidation Value

Liquidation Value Definition: Liquidation value (LV) is the total worth of a company’s tangible assets (physical assets) when it goes out of business. All tangible assets – fixed as well as current – are considered while calculating the liquidation value of the company. However, intangible .....

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Determined Fair Market Value (FMV)

Determined Fair Market Value (FMV)

Determined Fair Market Value (FMV) Definition: Fair market value (FMV) is an estimate of the market value of a property, that is a voluntary transaction between a willing buyer and a willing seller, both having equal bargaining power and a reasonable knowledge of the pertinent facts. It differs f.....

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