What is the primary goal of financial management?
Understand the Problem
The question is asking for the main objective or purpose behind financial management practices within an organization, which typically involves optimizing financial resources to achieve the organization's goals.
Answer
maximizing shareholder wealth
The final answer is maximizing shareholder wealth
Answer for screen readers
The final answer is maximizing shareholder wealth
More Information
The primary goal of financial management is to maximize shareholder wealth, which involves increasing the value of the company over time.
Tips
Common mistakes include confusing profit maximization with maximizing shareholder wealth. While related, maximizing shareholder wealth also considers the company's long-term value and sustainability.
Sources
- What Is the Primary Goal of Financial Management? - BYJU'S - byjus.com
- Search Answer Box - study.com
- Financial Management Explained: Scope, Objectives & Importance - NetSuite - netsuite.com
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