Maximization reduction financial requires maximum return and try to get a reduction in losses as much as possible.The professional in charge tries to earn maximum returns for the company though proper financial management. He cannot guarantee profits in the long run because of business uncertainties. However, a company can earn high profits even in the long-term, if: • it takes proper financial decisions. • And uses the finance of the company properly. Wealth accumulation is also a main objective of financial management. This means to earn maximum wealth for the owners So, management tries to give a higher dividend to the shareholders. He also tries to increase the value of the investment. The value is directly related to the performance of the company. Better the performance, higher is the market value of shares and vice-versa. Therefore one must try to maximize shareholder's value. êîòîâî, Russian Federation
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