Question

From a finance perspective, what should the primary goal of the Chief Financial Officer (CFO) of the corporation be?

A)        Maximize the pay and compensation of employees and managers of the firm.

B)        Maximize the value of the stockholders wealth because they are the owners of the corporation.

C)        Maximize the societal value to minimize governmental interference.

D)       Make Professor Gillette happy.

Answer 1

From a finance perspective, what should the primary goal of the Chief Financial Officer (CFO) of the corporation be?

The primary goal of CFO is to Maximize the value of the stockholders wealth because they are the owners of the corporation.

• The CFO is responsible for overseeing the financial operations of the entire company, from payroll to appropriations. She must manage the accounting department, the budget, control debt and assets, and deal with company investments.
• At strategic planning sessions, the CFO represents the financial interests of the business. He must ensure plans are viable based on current and future budgets and is responsible for recommending changes that will better boost profitability.
• At strategic planning sessions, the CFO represents the financial interests of the business. He must ensure plans are viable based on current and future budgets and is responsible for recommending changes that will better boost profitability.