Question
In: Economics
Which of the following best describes the goal of financial management? Select one: a. Maximisation of...
Which of the following best describes the goal of financial management?
Select one:
a. Maximisation of shareholder wealth
b. Maximisation of profit
c. Minimisation of risk
d. Preparation of financial reports
Solutions
Expert Solution
Option a
The main goal of financial management is to increase the share value of a stock, which eventually increases the wealth of the share holders.
Rahul Sunny answered 2 years agoRelated Solutions
Which one of the following best states the primary goal of financial management?
Which one of the following best states the primary goal of financial management? maximize current dividends per share maximize the current value per share increase cash flow and avoid financial distress minimize operational costs while maximizing firm efficiency maintain steady growth while increasing current profits
Which one of the following best matches the primary goal of financial management?
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
Which one of the following best matches the primary goal of financial management?
Which one of the following best matches the primary goal of
financial management?A.Increasing the dollar amount of each saleB.Increasing traffic flow within the firm's storesC.Transforming fixed costs into variable costsD.Increasing the firm's liquidityE.Increasing the market value of firm
Which of the following best describes a lien? Select one: a. It is an encumbrance or...
Which of the following best describes a lien?
Select one:
a. It is an encumbrance or claim against property.
b. It is the interest paid on a mortgage.
c. It is a consideration given to the mortgager.
d. It is the title deed of the property mortgaged.
Regarding the goal of financial management, which of the following is the best answer?
Regarding the goal of financial management, which of the following is the best answer? maximizing earnings per share. maximizing net income. maximizing market share. maximizing shareholders' wealth.
Which of the following statements best describes corporate goals? a. The proper goal of the financial...
Which of the following statements best describes corporate
goals?
a.
The proper goal of the financial manager should be to attempt to
maximize the firm’s expected cash flows, because this will add the
most to the wealth of the individual shareholders.
b.
The riskiness inherent in a firm’s earnings per share (EPS)
depends on the characteristics of the projects the firm selects,
and thus on the firm’s assets. However, EPS is not affected by the
manner in which those assets...
We know that the goal of corporate financial management is the maximisation of the share price...
We know that the goal of corporate financial management is the
maximisation of the share price (or the market value of the firm).
One question that might be asked is why don't financial managers
just maximise profits instead? Which of the following points
explain why it would be problematic to set profit maximisation as
the goal of financial management?
Select one:
a. "Profit" is not a well-defined concept. It can mean one thing
to a business person and something different...
Which one of the following actions by a financial manager best meets the goal of financial...
Which one of the following actions by a financial
manager best meets the goal of financial management?
a) deciding a firm should be 100% equity
financed
b)delaying cash payments to increase the total csh on
hand
c) Issuing additional shares of stocks to increase the
total cash on hand
d)accepting a project that enhances the current market
value of the firms stoc k
e)none of the above
Which of the following best describes valence? Select one: a. It is the consequence resulting from...
Which of the following best describes valence?
Select one:
a. It is the consequence resulting from performance or lack of performance.
b. It is the perceived likelihood that employees' efforts will enable them to attain valuable goals.
c. It is the perceived likelihood that performance will be followed by a particular outcome.
d. It is the value the expected outcome holds for the person contemplating it.
Which of the following statements best describes a common resource? Select one: a. A resource that...
Which of the following statements best describes a common
resource?
Select one:
a. A resource that we cannot stop people from using, and when it
is used, its benefit available to others is reduced.
b. A resource that is non-excludable but rival.
c. A resource that is typically characterised by overuse.
d. A resource that would not have occurred were the property
rights well defined.
e. All of the above
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