Historically, the most widely accepted goal of financial management is to:
A) help a firm fulfil its social responsibility.
B) maximize the value of a firm to its owners.
C) analyze the risk associated with investments.
D) prevent investing in anything risky.

Question

Quizplus · Accepted Answer

The most widely accepted goal of financial management is to maximize the value of a firm to its owners. This is often referred to as shareholder wealth maximization or maximizing shareholder value. It involves managing the firm's resources in a way that generates the highest possible return for the owners. This goal is consistent with the overall goal of capitalism, which is to allocate resources to their most efficient and productive uses.

Historically, the Most Widely Accepted Goal of Financial Management Is