Question

In: Finance

The primary goal of financial management is creating value by _______


The primary goal of financial management is creating value by _______ 

 A. making investments that are worth more than they cost 

 B. issuing bonds that receive investment-grade ratings 

 C. making investments that pay off sooner rather than later 

 D. taking as little risk as possible

Solutions

Expert Solution

Ans: Option A.

The main goal of a financial management is to create value for its owner.Which can be done by investing in those assets which will help in increasing the return.For Example:

Suppose FIrm A purchases a machine worth Rs.50,000 which is used to produce Data chips. Then company sold those chips for Rs 70,000. So this Rs.20,000 is the profit/Value added made by the firm.

jeff jeffy answered 2 years ago
Expert Solution

Primary goal of financial management is procurement of funds and affective utilisation of funds.

From above answer is Option A

Making investments that are worth more than they cost.

jeff jeffy answered 2 years ago
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