Match the words with the term.
-What is the ultimate objective of financial management?
A) to ensure the ROA is higher than ROR
B) to obtain a higher ROR than ROA
C) to ensure that ROA is higher than the cost of financing
D) to collect trade receivables faster than the payment of trade and other payables

Question

Quizplus · Accepted Answer

The ultimate objective of financial management is to ensure that the Return on Assets (ROA) is higher than the cost of financing. This indicates that the company is generating a return on its investments that exceeds the cost it incurs to finance those investments, leading to value creation for shareholders.

Match the Words with the Term