BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the number and types of products or services provided by the firm.
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the minimization of the amount of taxes paid by the firm.
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the creation of value for shareholders.
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the dollars profits earned by the firm.
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Detailed explanation-1: -The focal point of financial management in a firm is: the number and types of products or services provided by the firm. the minimization of the amount of taxes paid by the firm. the creation of value for shareholders.
Detailed explanation-2: -Wealth maximization (shareholders’ value maximization) is also a main objective of financial management. Wealth maximization means to earn maximum wealth for the shareholders. So, the finance manager tries to give maximum dividend to the shareholders. He also tries to increase the market value of the shares.
Detailed explanation-3: -Modern financial management is concerned with proper anticipating, Acquisition and allocation of fund effectively. 14. Financial Managers and accountants perform the same functions in a firm.
Detailed explanation-4: -a term used to describe a firm’s concentration on a single or limited range of business activities.
Detailed explanation-5: -"Shareholder wealth” in a firm is represented by: the number of people employed in the firm. the book value of the firm’s assets less the book value of its liabilities. the amount of salary paid to its employees. the market price per share of the firm’s common stock.