The primary objectives of financial management include financial management of resources, decision-making and resource allocation activities of an organisation to ensure economic stability.

It aims to maximize the net income or profit of the business to ensure the long-term success and sustainability of the business.

Profit maximisation

It aims to maximize the value of the shareholders' wealth who have invested their capital in the firm and expect a return on their investment.

Wealth maximisation

It refers to the ability of a business to meet its short-term obligations thereby supporting its long-term viability and success.


It refers to the ability of a business to meet its long-term obligations and sustain its operations and growth initiatives over time.


It is the process of identifying, evaluating and controlling business related risks to protect the financial health of the organisation.

Risk management

It is one of the major objectives of financial management. It reflects the expansion, profitability, and value-creation aspirations of a comany.


These objectives of financial management are interrelated and sometimes conflicting while making financial decisions.