The goal of a financial manager should be:-
A)to maximise next year's profit
B)to minimise next year's cost
C)to maximise the value of the existing owners' equity
D)to take no risks with shareholders' investments
E)None of these are appropriate goals

Question

Quizplus · Accepted Answer

The goal of a financial manager should be to maximize the value of the existing owners' equity, which means increasing the long-term value and wealth of the company for its shareholders. Maximizing profit and minimizing cost may not result in long-term value creation, and taking no risks with shareholders' investments may result in missed opportunities for growth and profitability. Therefore, the best choice is C.

The Goal of a Financial Manager Should Be:-