BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Wealth maximization: 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 a maximum dividend to 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: -The primary objectives of financial management are – Profit Maximization and Wealth Maximization. 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.

Detailed explanation-4: -The objective of wealth maximization takes into accounta)Amount of returns expectedb)Timing of anticipated returnsc)Risk associated with uncertainty of returnsd)All of the aboveCorrect answer is option ‘D’.

Detailed explanation-5: -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.