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The primary goal of the financial management is __________.
  • a)
    to maximize the return
  • b)
    to minimize the risk
  • c)
    to maximize the wealth of owners
  • d)
    to maximize profit
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The primary goal of the financial management is __________.a)to maximi...
Profit maximization is the main aim of any business and therefore it is also an objective of financial management. Profit maximization, in financial management, represents the process or the approach by which profits Earning Per Share (EPS) is increased. In simple words, all the decisions whether investment or financing etc. are focused on maximizing the profits to optimum levels.
Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits. All the decisions with respect to new projects, acquisition of assets, raising capital etc are studied for their impact on profits and profitability. If the result of a decision is perceived to have a positive effect on the profits, the decision is taken further for implementation.

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The primary goal of the financial management is __________.a)to maximi...
Profit maximization is the main aim of any business and therefore it is also an objective of financial management. Profit maximization, in financial management, represents the process or the approach by which profits Earning Per Share (EPS) is increased. In simple words, all the decisions whether investment or financing etc. are focused on maximizing the profits to optimum levels.
Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits. All the decisions with respect to new projects, acquisition of assets, raising capital etc are studied for their impact on profits and profitability. If the result of a decision is perceived to have a positive effect on the profits, the decision is taken further for implementation.
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The primary goal of the financial management is __________.a)to maximize the returnb)to minimize the riskc)to maximize the wealth of ownersd)to maximize profitCorrect answer is option 'D'. Can you explain this answer?
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