Objectives of Financial Management[edit] This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Financial management" – news · newspapers · books · scholar · JSTOR (Novem ber 2018) (Learn how and when to remove this template message) Profit maximization happens when marginal cost is equal to marginal revenue. This is the main objective of Financial Management. Wealth maximization means maximization of shareholders' wealth. It is an advanced goal compared to profit maximization. Survival of company is an important consideration when the financial manager makes any financial decisions. One incorrect decision may lead company to be bankrupt. Maintaining proper cash flow is a short run objective of financial management. It is necessary for operations to pay the day-to-day expenses e.g. raw material, electricity bills, wages, rent etc. A good cash flow ensures the survival of company. Minimization on capital cost in financial management can help operations gain more profit. It is vague :- There are several types of profits before interest, depreciation and taxes, profit before taxes, profit after taxes, cash profit etc Scope of Financial Management[edit] This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Financial management" – news · newspapers · books · scholar · JSTOR (Novem ber 2018) (Learn how and when to remove this template message) Estimating the Requirement of Funds: Businesses make forecast on funds needed in both short run and long run, hence, they can improve the efficiency of funding. The estimation is based on the budget e.g. sales budget, production budget. Determining the Capital Structure: Capital structure is how a firm finances its overall operations and growth by using different sources of funds.[2] Once the requirement of funds has estimated, the financial manager should decide the mix of debt and equity and also types of debt. Investment Fund: A good investment plan can bring businesses huge returns. To ascertain maximum profit as well as maintain the core value of the organization Financial Management for Start Up[edit] For new enterprises, it is important to make a good estimation on costs, sales.[3] Consideration on appropriate length sources of finances can help businesses avoid the cash flow problems even the failure of setting up. There are fixed and current sides of assets balance sheet. Fixed assets refers to assets that cannot be converted into cash easily, like plant, property, equipment etc.[4] A current asset is an item on an entity's balance sheet that is either cash, a cash equivalent, or which can be converted into cash within one year.[5] It is not easy for start ups to forecast the current asset, because there are changes in receivables and payables.[6]