What is the primary goal of financial management for a sole proprietorship?
A)Maximize net income given the current resources of the firm
B)Decrease long-term debt to reduce the risk to the owner
C)Minimize the tax impact on the proprietor
D)Maximize the market value of the equity
E)Minimize the reliance on fixed costs

Question

Quizplus · Accepted Answer

The primary goal of financial management for any business, including a sole proprietorship, is to maximize the market value of the owner's equity, which reflects the overall value and success of the business.

What Is the Primary Goal of Financial Management for a Sole