Define the meaning of objective - financial management, Financial Management

Define the meaning of objective - financial management

The term objectives offers a normative framework. That is the focus in financial literature is on what a firm must try to achieve and on policies that must be followed if certain goals are to be achieve. Implication is that these aren't necessarily followed by firms in actual practice. They are rather used to serve as a basis for theoretical analysis and don't reflect contemporary empirical industry practices.

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