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Select the correct code for the following two statements of Assertion (A) and Reasoning (R):
Assertion (A): Shareholders Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.
Reasoning (R): There exists a principal-agent relationship between the shareholders and the management of the company.
  • a)
    (A) and (R) both are correct.
  • b)
    (A) is correct, but (R) is incorrect.
  • c)
    (A) is incorrect, but (R) is correct.
  • d)
    (A) and (R) both are incorrect.
Correct answer is option 'A'. Can you explain this answer?
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Select the correct code for the following two statements of Assertion ...
The firm's investment and financing decisions are unavoidable and continuous. In order to make them rational, the firm must have a goal. Two financial objectives predominate amongst many objectives.
These are:
1. Profit maximisation
2. Shareholders' Wealth Maximisation (SWM)
Shareholders' Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.
In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders. The manager, acting as the agent for the shareholders, or principals, is supposed to make decisions that will maximise shareholders' wealth even though it is in the manager's best interest to maximise his own wealth.
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Select the correct code for the following two statements of Assertion ...
The firm's investment and financing decisions are unavoidable and continuous. In order to make them rational, the firm must have a goal. Two financial objectives predominate amongst many objectives.
These are:
1. Profit maximisation
2. Shareholders' Wealth Maximisation (SWM)
Shareholders' Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.
In corporate finance, the agency problem usually refers to a conflict of interest between a company's management and the company's stockholders. The manager, acting as the agent for the shareholders, or principals, is supposed to make decisions that will maximise shareholders' wealth even though it is in the manager's best interest to maximise his own wealth.
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Select the correct code for the following two statements of Assertion (A) and Reasoning (R):Assertion (A): Shareholders Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.Reasoning (R): There exists a principal-agent relationship between the shareholders and the management of the company.a)(A) and (R) both are correct.b)(A) is correct, but (R) is incorrect.c)(A) is incorrect, but (R) is correct.d)(A) and (R) both are incorrect.Correct answer is option 'A'. Can you explain this answer?
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Select the correct code for the following two statements of Assertion (A) and Reasoning (R):Assertion (A): Shareholders Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.Reasoning (R): There exists a principal-agent relationship between the shareholders and the management of the company.a)(A) and (R) both are correct.b)(A) is correct, but (R) is incorrect.c)(A) is incorrect, but (R) is correct.d)(A) and (R) both are incorrect.Correct answer is option 'A'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Select the correct code for the following two statements of Assertion (A) and Reasoning (R):Assertion (A): Shareholders Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.Reasoning (R): There exists a principal-agent relationship between the shareholders and the management of the company.a)(A) and (R) both are correct.b)(A) is correct, but (R) is incorrect.c)(A) is incorrect, but (R) is correct.d)(A) and (R) both are incorrect.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Select the correct code for the following two statements of Assertion (A) and Reasoning (R):Assertion (A): Shareholders Wealth Maximisation (SWM) is an appropriate and operationally feasible financial management goal and not the profit maximisation.Reasoning (R): There exists a principal-agent relationship between the shareholders and the management of the company.a)(A) and (R) both are correct.b)(A) is correct, but (R) is incorrect.c)(A) is incorrect, but (R) is correct.d)(A) and (R) both are incorrect.Correct answer is option 'A'. Can you explain this answer?.
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