GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The basic objective of financial Management is
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Ensuring financial disciplined in the organisation
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Maximization of shareholders wealth
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Profit planning of the organisation
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Maxirnization of profits
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Explanation:
Detailed explanation-1: -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-2: -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.
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