Multiple choice

The basic objective of Financial Management is

  1. maximising the profit

  2. maximising the shareholder's wealth

  3. ensuring financial discipline in the organisation

  4. arrangement of funds

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The primary objective of financial management in a corporate context is to maximize the wealth of the shareholders, which is reflected in the stock price.