What goal should always motivate the actions of the firm's financial manager select?
Answer and Explanation:
The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock. A private company's value is the price at which it could be sold.
Typically, the primary goal of financial management is profit maximization. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits.
- Foster collaboration. ...
- Recognize success. ...
- Reinforce objectives. ...
- Focus on improvement. ...
- Offer support. ...
- Avoid micromanaging.
The goal that should always motivate the actions of the firm's financial manager is to maximize the current market value (share price) of the equity of the firm (whether its publicly traded or not).
Financial motivation. involves motivating employees with money and things associated with money. The main methods of financial motivation used in business are remuneration, bonuses, commission, promotion and fringe benefits.
The appropriate goal for the financial manager can thus be stated quite easily: The goal of financial management is to maximize the current value per share of the existing stock. The goal of maximizing the value of the stock avoids the problems associated with the different goals we listed earlier.
The goal of a financial manager is to maximize the wealth of the shareholders (they implement this by maximizing the value of the company's assets). It is the correct goal because shareholders are the owners of the firm.
The primary goal of financial management is to maximize the current value of the existing stock. Any management action that is contrary to this goal would be an acceptable answer.
- Investment decisions.
- Financial decisions.
- Dividend decisions.
What should motivate a manager?
A new study by researchers at the Center for Creative Leadership (CCL) and Clark University reveals that the most effective way to motivate managers is by providing “intrinsic rewards” such as psychological well-being, joy, learning and fulfillment.
An act as simple as praising your team members for doing good work can have a tremendous impact on employee morale. The psychology behind this is clear: Positive feedback helps your employees feel valued in their roles. When someone feels valued, they are more motivated to continue performing at their highest levels.
- Set clear goals and share them with your team.
- Give team members the autonomy to do their work.
- Accommodate flexible work schedules.
- Encourage open and frequent communication.
- Balance workload among team members.
- Give and receive feedback from your team.
- Recognize and reward your team's contributions.
The goal of financial management is to maximize a company's shareholder value by making the best possible decisions about how to use its financial resources. There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions.
People are motivated in three ways: material, social and ideological.
Through research with thousands of employees and leaders, we've discovered that there are five major motivations that drive people's actions at work; Achievement, Power, Affiliation, Security and Adventure.
For: Money is an effective, powerful and simple motivator. Self- evidently, money motivates and extra money motivates people to work extra hard. It's natural to compete, and when rewarded with money for better work then productivity and standards are raised for all.
The primary objective of the financial manager is to focus on adopting techniques, methods, and strategies that will enhance the value of the company's stocks which in turn help to maximize the wealth of the company's shareholders.
The goal, or we can say the objective of any business, is generally considered the maximization of the shareholder wealth, or we can say that it maximizes the firm's value for the owners of it.
The goal of financial management is to maximize the market value of the existing owners' equity. For public companies, this is the same as maximizing the stock price, or shareholder wealth maximization.
What are the four functions of finance manager?
Most financial management plans will break them down into four elements commonly recognised in financial management. These four elements are planning, controlling, organising & directing, and decision making.
In conclusion, the three most common reasons for financial failure are lack of financial planning, ineffective cost management, and insufficient market research. Firms that proactively address these issues increase their chances of achieving and maintaining financial stability.
What is the role of Financial Management? The Financial Management main role is to plan, organise and govern all the financial activities of a company. It applies management ethics to the financial resources of a company.
McClelland has argued that the high need for social power is the most important motivator for successful managers. Successful managers tend to be high in this type of nPow.
Motivating managers and employees to adopt a major new strategy involves clear communication, involvement, recognition, and support. Explaining the strategy's benefits, involving employees in planning, providing training, and recognizing their efforts are essential steps.
