Question a) Financial manager must be concerned with THREE (3) basic types of questions in making financial management decision

Financial manager concerened with following basic type of questions for financial management decision.

1.Financing problem-That means finance manager face problem that the receive through equity or debt.That means facing question of optimum finance mix.

2.Investment problem-Manager also facing question that where to invest to maximize return of the business.Capital budgeting decision and working capital management create question in the mind of finance manager.

3.Diviidend questions-finance manager faces questions how much dividend paid to shareholders and how much keep as retained earning.

Following are the objective of financial management

1.Profit maximization -profit maximization is one of the mosr important objective of financial management.

2Reduction in cost of capital-Financial management involve in reducing cost of capital.

3.Shareholders wealth maximization-For public company shareholders wealth maximization is most important objective of financial management.

4.Reducing the cost of goods sold-Reducing cost of goods sold is also an objective of financial management.