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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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