Abstract:

Financial management, in theory and practice of a developed market economy is characterized by high dynamics, high level of evolution of the subject, scope and determinants of decisions made. At the same time, the basic goal of all enterprises is effective financial management as a determinant of the success or failure of an economic unit. When analyzing the financial management process, first of all, it is necessary to define the main goals, functions and management instruments, and then compare the company's goals with the goals of financial management. In the literature on the subject and in practice, you can meet many goals of the company's activity, i.e. maximizing profit, maximizing sales, achieving a satisfactory level of profit, survival of the company, but all these categories are directly or indirectly related to the profitability. However, the qualification of profit maximization as the superior goal of the enterprise raises a lot of controversy. On the other hand, profit maximization should not be treated as the goal of the company's activity, as it focuses on current effects, ignoring such an important issue as the structure of revenues over time. This gap is filled by maximizing the value of the owners' wealth.