GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one is not an important objective of financial Management?
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Value Maximisation
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Profit Maximisation
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Wealth Maximisation
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Maximisation of Social benefits
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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.
Detailed explanation-2: -It has traditionally been argued that the primary objective of a company is to earn profit; hence the objective of financial management is also profit maximisation. This implies that the finance manager has to make his decisions in a manner so that the profits of the concern are maximised.
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