What is the primary goal of financial management for a sole proprietorship?

Maximize the market value of the equity

Maximize net income given the current resources of the firm

Minimize the tax impact on the proprietor

Decrease long-term debt to reduce the risk to the owner

Minimize the reliance on fixed costs

Solutions

Expert Solution

a.maximise the market value of the equity.

the primary goal of financial management for a sole proprietorship is to maximise the market value of its equity.

only then the focus would shift to increasing net income,minimising tax impact, decreasing long term debt and minimising reliance on fixed costs.

The market value of equity is the value of the business.

jeff jeffy answered 1 year ago

Expert Solution

jeff jeffy answered 1 year ago

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