TRUTH 47 Financial objectives of a business
Before a business develops the types of forecasts, budgets, and financial statements that it needs to manage its finances, it must have a firm grasp of its financial objectives. Nearly all businesses have three main financial objectives: profitability, liquidity, and overall financial stability. Understanding these objectives sets a business on the right financial course and helps explain the need for forecasts, budgets, and financial statements, which will be discussed in Truth 48, “The nitty-gritty: Forecasts, budgets, and financial statements.”
Nearly all businesses have three main financial objectives: profitability, liquidity, and overall financial stability.
Profitability
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