Which one of the following best matches the primary goal of financial management?

A.Increasing the dollar amount of each sale

B.Increasing traffic flow within the firm's stores

C.Transforming fixed costs into variable costs

D.Increasing the firm's liquidity

E.Increasing the market value of firm

Solutions

Expert Solution

Option E is correct

The primary goal of financial management is to increase the market value of the firm.

Option A is incorrect because the dollar amount of each sale may increase but the sales volume may decrease. So, the value of the firm is not increased

Option B is incorrect because Increasing traffic flow within the firm's stores doesn't guarantee an increase in sales

Option C is incorrect because Transforming fixed costs into variable costs will not have any effect on the bottom line.

Option D is incorrect because Increasing the firm's liquidity will only help managing the working capital

jeff jeffy answered 1 year ago

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