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Financial Management Business FinanceEasy

The primary objective of financial management is:

Correct Answer: C — Wealth maximisation of shareholders

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.