What are the advantages and disadvantages of taking profit maximization as the financial management goal?

Advantages: emphasizing the effective use of capital can be used to measure how enterprises grow rationally, and it is easy to be understood and operated in practice.

Disadvantages: Maximizing profits can easily lead enterprises to unilaterally pursue short-term interests and ignore long-term development, ignoring the two major problems that enterprises face every day.

Financial management goal, also known as financial management goal, refers to the fundamental goal that enterprises should achieve in financial activities, which determines the basic direction of enterprise financial management. The goal of financial management is the starting point and destination of all financial activities, and it is the basic standard to evaluate whether the financial activities of enterprises are reasonable. Financial management objectives are also the financial concentration and generalization of business objectives of enterprises, and the starting point and destination of all financial activities of enterprises. Let's take a quiz before studying. Click to test whether I am suitable for accounting.

Establishing financial management objectives is the prerequisite for the success of modern enterprise financial management. Only with clear and reasonable financial management objectives can financial management have a clear direction. Therefore, enterprises should scientifically and reasonably select and determine the financial management objectives according to their own actual situation and the requirements of the market economic system for enterprise financial management. To study the financial management objectives of enterprises, we must start with the factors that affect the financial management of enterprises in order to make the best choice.

Learning financial management is recommended to go to Heng Enterprise Education, which was established in 2002 and has rich educational resources and teaching experience. The school has always insisted on cultivating practical and skilled talents with strong application, high level and specialization. Running school for 18 years has trained a large number of practical talents for the society.