The primary goal of ﬁnancial management is to:
A) Maximize current sales.
B) Maximize the current value per share of the existing stock.
C) Avoid ﬁnancial distress.
D) Minimize operational costs.
E) Maintain steady earnings growth.

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize the current value per share of the existing stock. This is often achieved by making decisions that increase the profitability and efficiency of the company, ultimately benefiting shareholders by increasing the value of their shares. While minimizing operational costs and maintaining steady earnings growth are important considerations, they are not the primary goal of financial management. Avoiding financial distress is also important, but it is more of a risk management goal rather than the primary goal of financial management. Maximizing current sales may be a goal of the marketing department but it is not the primary goal of financial management.

The Primary Goal of ﬁNancial Management Is To