The primary goal of the financial management is ____________.

A. to maximize the return

B. to minimize the risk

C. to maximize the wealth of owners

D. to maximize profit

Answer: Option C

Solution(By Examveda Team)

The primary goal of the financial management is to maximize the wealth of owners. All businesses aim to maximize their profits, minimize their expenses and maximize their market share.

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Comments ( 6 )

  1. Diksha Yadav
    Diksha Yadav :
    2 years ago

    I think it should be to maximize the return as they are taking about prime goal

  2. Smirti Bam
    Smirti Bam :
    3 years ago

    Such a well-managed and precisely elaborated content. Thank you for sharing.
    Financial Management is one of the areas of finance which deals with the management of all the financial resources of the organization for the smooth functioning of the organization goals. Financial Management has mainly two goals. They are
    • Profit maximization and
    • Value maximization (Shareholder wealth maximization)
    Fore more Check out this;
    Goals of Financial Management

  3. Muhammad Fahad
    Muhammad Fahad :
    4 years ago

    c is right

  4. Raju Prajapat
    Raju Prajapat :
    4 years ago

    C is right.

  5. Sumanyu Goyal
    Sumanyu Goyal :
    5 years ago

    The answer should be C "to maximize the wealth of owners" and not profit maximization.

  6. Mhb 077
    Mhb 077 :
    5 years ago


Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process