What are the goals of a business finance?

The initial goal of business finance is to manage a firm's monetary books while maximizing the value of the business and monitoring financial risks.
A business' finance team have many responsibilities and goals and although the main goal is to maximize the value of the company, many things have to be taken into account and put into place, these include:
Monitor Financial Activity:
All businesses set out to make money, and by monitoring financial activity, you will be able to keep track of the losses and profits made. In order to stick to the ultimate business goal of maximizing the company's value, you will need to accurately record every cent that the company is spending, and every cent that is coming into the company. Comparing those two factors should help you discover as to whether the business is increasing in value - one of the main goals of business finance.
Assessing:
A goal of business finance is to always be making progress in order to take the business to new heights. In order to ensure this happens and can be done, it's advisable that financial books are regularly assessed, as are the profit and loss mark ups. This allows the business to see what is working and what needs to be changed. For example, if an area of the company is losing too much money, this area will have to be discussed as it is hindering the main goal of business finance.
Financial Planning:
A goal of business finance is to always have a prolific company with a good, healthy income and minimal, if not non-existent losses. In order to obtain a prolific business, a financial plan should always be made and constantly added to. Although something like a budget plan can never be stuck to 100%, sticking to it as much as possible will result in avoiding unnecessary losses which is paramount to a business being successful and valuable.

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Types of Debentures

Types of debentures:

1. Simple naked or unsecured debentures: - 

                              These debentures are not given any security on assets. They have no priority as compared to other creditors.
2.  Secured or mortgage debentures: -  

                              The se debentures are given a security on assets of the debentures company. In case of default in the payment of interest or principle amount, debenture holders can sell the assets in order to satisfy their claims.
3.  Bearer debentures: - 

                               These debentures are easily transferable. They are just like negotiable instruments. The debenture is handed over to the purchaser without any registration deed.
4.  Registered debentures: - 

                               As compared to bearer debenture which is transferred by mere delivery, registered debenture require a procedure to be followed for the transfer.
5.  Redeemable debenture: - 

                               These debentures are to be redeemed on the expiry of ascertain period. The interest on the debenture is paid periodically but the principle amount is returned after a fixed period.
6. Irredeemable debentures:-  

                               Such debentures are not redeemable during the life time of the company. There are payable either on the winding up of the company or at the time of any default on the part of the company.
7.  Convertible debenture: - 

                               Sometimes convertible debenture is issued by a company and the debenture holders are given an option to exchange the debenture into enquiry shared after the lapse of a specified periods.

8. Non-convertible debentures:- 

                                Non-convertible debentures do not confer any option on the holder to convert the debentures into equity shares and are redeemed at the expiry of specific period. these non-convertible debentures carry higher interest rate than other types of debentures because of the non-attractive feature of non-convertibility into other form of stocks.

9. Subordinate debentures: 

                                It is an unsecured debt, which is junior to all other debts. this types of debt will have a higher interest rate than senior debt and will frequently have rights of conversion into ordinary shares. subordinated debt is often called mezzanine finance because it ranks between equity and debt.

10. Guaranteed debentures: 

                                 Some business are able to raise long-term money because their debts are guaranteed, usually by their parent companies. in some instance, the governement guarantee the bonds issued by their undertakings and corporations like electricity supply board, irrigation corporaton, etc.

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