ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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strengthening financial position
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satisfying employees
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maximising shareholders wealth
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compliance of government rule
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Detailed explanation-1: -The shareholder value maximization model holds that the primary goal of the firm is to maximize its market value and implies that business decisions should seek to increase the net present value of the economic profits of the firm.
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: -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-4: -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-5: -Profit Maximization. Wealth Maximization. Maintenance of Liquidity. Proper Estimation of Financial Requirements. Proper Mobilization. Proper Utilization of Financial Resources. Improved Efficiency. Meeting Financial Commitments with Creditors. More items