To understand financial decision making, we first need to understand the goal of financial management. Profit maximization is probably the most commonly cited business goal. However this is, at best, an ambiguous objective. Alfred P. Sloan, long time President and Chairman of General Motors is quoted as saying, "General Motors is not in the business of making automobiles. General Motors is in the business of making money."
All you wanted was a simple loan from your bank. From your point of view, the borrowings to support the equipment purchase and additions to staff are a "no-brainer". But, when you left the bank, your head was spinning at the complexity of just borrowing some money. You were sure you could pay back the loan. After all, the loan was going to enable you to generate tremendous revenues at the company. So why isn't the banker as excited as you are?
All you wanted was a simple loan from your bank. From your point of view, the borrowings to support the equipment purchase and additions to staff are a "no-brainer". But, when you left the bank, your head was spinning at the complexity of just borrowing some money. You were sure you could pay back the loan. After all, the loan was going to enable you to generate tremendous revenues at the company. So why isn't the banker as excited as you are?
All you wanted was a simple loan from your bank. From your point of view, the borrowings to support the equipment purchase and additions to staff are a "no-brainer". But, when you left the bank, your head was spinning at the complexity of just borrowing some money. You were sure you could pay back the loan. After all, the loan was going to enable you to generate tremendous revenues at the company. So why isn't the banker as excited as you are?
All you wanted was a simple loan from your bank. From your point of view, the borrowings to support the equipment purchase and additions to staff are a "no-brainer". But, when you left the bank, your head was spinning at the complexity of just borrowing some money. You were sure you could pay back the loan. After all, the loan was going to enable you to generate tremendous revenues at the company. So why isn't the banker as excited as you are?
