What is the primary goal of financial management?
A)Increased earnings
B)Maximizing cash flow
C)Maximizing shareholder wealth
D)Minimizing risk of the firm

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize shareholder wealth. This involves making decisions that increase the value of the company's stock and ultimately benefit its owners, the shareholders. While increasing earnings and maximizing cash flow are important aspects of financial management, they are ultimately aimed at achieving the larger goal of maximizing shareholder wealth. Minimizing risk is also important, but it is not the primary goal of financial management.

What Is the Primary Goal of Financial Management