In finance the primary goal of management is to:
A) utilize its economic resources in the most advantageous way.
B) minimize all possible expenses.
C) maximize shareholder wealth which is generally achieved by maximizing stock price.
D) make the best use of its assets.

Question

Quizplus · Accepted Answer

Maximizing shareholder wealth is the main goal of financial management. This is accomplished by maximizing the stock price, which ultimately benefits the shareholders. Option A, B, and D are important aspects of financial management, but the ultimate goal is to enhance shareholder value.

In Finance the Primary Goal of Management Is To