Question:

Financial management aims at choosing the best investment and financing alternatives. Its objective is to:

Updated On: Oct 28, 2024
  • Increase the shareholders’ wealth
  • Decrease the shareholders’ wealth
  • Increase the shareholders’ capital
  • Decrease the shareholders’ capital
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The Correct Option is A

Solution and Explanation

The primary objective of financial management is to increase shareholders’ wealth by making investment and financing decisions that maximize returns relative to the risks involved.
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