 Let's take the example of a profit earning entity. In such type of entities, what is the goal of financial management? Let's answer this question that the goal of financial management in a profit earning entity is value maximization. Now, the question arises whether it is an appropriate goal? However, money making goal is an inappropriate goal because it is a vague goal. Money cannot be defined. There are multiple definitions of money because there are multiple users of money. However, certain other possible goals of financial management can be listed like business survival, avoiding financial distress and bankruptcy, getting competitive advantages, trying to sale maximization, trying to cost minimization program in the business concern, enhanced profitability and maintaining steady income growth for a certain period of time in the days to come or quality enhancement. However, profit maximization is not an appropriate goal in the contemporary financial management because profit has multiple concepts, either it is in terms of earnings per share or an absolute value of net income. Further, it is unclear that it is a short term goal or long term goal. So, profit is not an appropriate goal for the financial management. The goals discussed earlier can be classified into two different heads. The first is the profitability enhancement. To enhance profitability for a business concern, one has the option to increase sales of the product, to increase market share, to effectively utilize resource in the business or to start a cost control program so that profit may be enhanced. The other purpose of the financial management is to control risks in the business in order to stabilize and save working of the assets of the business concern in order to ensure liquidity for a specific period of time or to avoid bankruptcy. So, these are the goals that may lead to the goal of financial management, but yet the overall comprehensive goal is yet to come. If we say that what is the appropriate goal of a financial management, then we have to think from the standpoint of view of the shareholders or owners of the business that what the owner needs. The simple answer to this question is that the owner's goal is to get value enhancement in the equity they have invested in their firm. So to enhance the value of the owner's equity, it is the only way to maximize the current value of the shares held by the owners. And in doing so, the firm of business is nothing to do. Business is the sole purpose for sole partnership, for a partnership firm or a joint stock company. The point is that every good decision made by the management definitely enhances the value of the equity held by the shareholders. Now the question arises that why share price maximization is the ultimate goal of the financial management. We know that in a business concern, there are employees, suppliers, creditors and everyone else that has some legitimate goal in the business firm. They have certain claims. So the owners have to first satisfy their claims and the rest is for the shareholders. This means that shareholders if they are getting something, this clearly shows that the upper layers are getting their share in full. So the ultimate goal of financial management for value enhancement in terms of share price maximization ensures that everyone in the chain before the shareholder is getting his share in full. Now what is corporate finance? We can define that corporate finance is developing a relationship between investment and financing decency, cash flows and value creation is the enhancement of modern corporate finance. But a more general goal of financial management can also be there, then what is that more general goal? Remember a more general beneficial goal is for benefit of both either having stock or having no predict stock firms. So maximizing the value of existing shareholder's equity is the most appropriate goal for the financial management in the contemporary world.