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 firm

Question

Quizplus · Accepted Answer

The primary goal of financial management is to increase the market value of the firm. This involves maximizing the wealth of the shareholders by increasing the profitability, efficiency, and competitiveness of the business. Increasing liquidity (D) is important but not the primary goal, while the other options (A, B, C) are not directly related to financial management goals.

Which One of the Following Best Matches the Primary Goal