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    Question

    The primary goal of Financial Management is

    to:
    A Maximize sales Correct Answer Incorrect Answer
    B Maximize market share Correct Answer Incorrect Answer
    C Maximize the wealth of the shareholders Correct Answer Incorrect Answer
    D Minimize employee turnover Correct Answer Incorrect Answer
    E Maximize the number of projects Correct Answer Incorrect Answer

    Solution

    The universally accepted primary goal of financial management is the maximization of shareholders' wealth. This is reflected in the long-term market value of the company's shares, which is a function of both profitability (earnings) and risk.

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