- May 4, 2014
- Posted by: essay
- Category: Term paper writing
Ensure profit maximization at the planned level of financial risk. This is achieved primarily through effective asset management, use of borrowed funds, selection of the most effective ways of operating and financial performance. But to achieve the goal of economic development the company should seek to maximize not balance profits, but net profits remaining at his disposal, which require implementation of effective tax, depreciation and dividend policy. When solving this problem it should be kept in mind that maximization of the profits of the enterprise can be achieved usually with a significant increase in the level of financial risks, as there is a direct connection between these two figures.
5. Minimization of the level of financial risk at the planned level of profit. If the level of company profits is given or planned in advance, an important task is to reduce the financial risk. Minimization can be achieved through diversification of the operating and financial activities, as well as the portfolio of financial investments, prevention and avoidance of certain financial risks, effective forms of internal and external security.
6. Ensuring constant financial balance of the company during its development. This balance is characterized by a high level of financial stability and solvency of the company at all stages of its development and ensures the formation of an optimal capital structure and asset ratios, by a sufficient level of self-financing of the investment needs.
All the objectives of financial management are closely interrelated and are aimed at achieving the main goals of financial management and of the enterprise.