MANAGEMENT

Detailed explanation-1: -Business finance ensures that a shareholder’s wealth is maximized. It is also important to understand that wealth maximization is different from profit maximization. Wealth maximization is holistic and ensures the growth of an organization.

Detailed explanation-2: -Corporate Social Responsibility is not an element of financial management.

Detailed explanation-3: -Non-financial motives Reasons might include personal satisfaction, challenge, being your own boss and independence. An entrepreneur may feel a level of personal satisfaction that they have created a successful business. It may be that an entrepreneur is able to make a business out of a hobby or interest.

Detailed explanation-4: -If survival can be assured, then profit is the next most important financial objective for a new business. A profit is earned when the revenue of the business exceeds the total costs. The entrepreneur can choose to reinvest (aka “retain") the profit in the business, or take it out as a personal payment or dividend.