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 is reflected in the stock price. This involves making decisions that will increase the firm's profitability, as well as managing the efficient use of resources to minimize costs and optimize asset utilization. Increasing the firm's liquidity (D) is also important, but it is not the primary goal. Choices A, B, and C are focused on operational goals rather than financial management goals.

Which One of the Following Best Matches the Primary Goal