Which one of the following best matches the primary goal of financial management?
A)Increasing the dollar amount of each sale
B)Increasing traffic flow within the firm's stores
C)Transforming fixed costs into variable costs
D)Increasing the firm's liquidity
E)Increasing the market value of the firm

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize the market value of the firm, which can be achieved by increasing profits, managing expenses, and making wise investment decisions. Increasing the market value of the firm will ultimately benefit all stakeholders, including shareholders, employees, and customers. Options A, B, and C may be important tactics for achieving financial goals, but they are not the overarching goal of financial management. Option D (increasing liquidity) is a secondary goal that supports the primary goal of maximizing market value, but it is not the primary goal in and of itself.

Which One of the Following Best Matches the Primary Goal