BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The paramount objective of the financial management is maximising the shareholders’ wealth. That is, the basic objective of financial management for a company is to opt for those financial decisions that prove gainful from the point of view of the shareholders.

Detailed explanation-2: -Shareholder wealth maximization means that a company’s primary goal is raising its stock price. Shareholder wealth maximization can be a good thing because it gives a firm’s managers a clear objective that builds value.

Detailed explanation-3: -Profit Maximization, as its name suggests, refers to the company’s profit should be increased, while Wealth Maximization aims to accelerate the entity’s value. Profit maximization is the primary goal of concern since profit acts as the measure of efficiency.

Detailed explanation-4: -Profit maximisation is a process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns. Influential factors such as sale price, production cost and output levels are adjusted by the firm as a way of realising its profit goals.