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Objectives : Business Finance MCQ Practice Questions & Answers (English) - ObjectiveMcq

Business Finance Practice

Browse

All Practice

Topics

Capital Budgeting Decisions
- NPV
- Payback Period
Capital Structure
Dividend Decision
- Financial Management
Financial Management
- Objectives
Financial Ratios
Sources Of Finance
Working Capital Management

PracticeBusiness FinanceFinancial ManagementObjectives

Objectives in Business Finance : Practice MCQ Questions & Answers with Explanations

1 practice sets · Page 1 of 1

Business FinanceEasyFinancial ManagementObjectives

The primary objective of financial management is:

Profit maximisation

Sales maximisation

Wealth maximisation of shareholders

Cost minimisation

View Answer

Correct Answer: C — Wealth maximisation of shareholders

Explanation:

The correct answer is C: Wealth maximisation of shareholders.

The primary objective of financial management is to maximise shareholders' wealth, reflected in the market value of shares. Profit maximisation is a narrower goal that ignores time value of money, risk, and the quality of earnings. Wealth maximisation is a broader, more comprehensive objective that accounts for these factors.