Question

    Which of the following is the main objective of

    financial management ? 
    A Maximizing employee benefits Correct Answer Incorrect Answer
    B Maximizing shareholder wealth Correct Answer Incorrect Answer
    C Minimizing production costs Correct Answer Incorrect Answer
    D Maximizing customer satisfaction Correct Answer Incorrect Answer
    E Maximizing social responsibility Correct Answer Incorrect Answer

    Solution

    The main objective of financial management is to maximize the wealth of the shareholders or owners of the company. This objective is achieved by making sound financial decisions regarding investments, financing, and dividend policies.

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