The four main financial objectives of a firm are ________.
A) efficiency, effectiveness, strength, and flexibility
B) power, success, efficiency, and effectiveness
C) control, effectiveness, liquidity, and power
D) success, strength, liquidity, and profitability
E) profitability, liquidity, efficiency, and stability

Question

Quizplus · Accepted Answer

The four main financial objectives of a firm are profitability (to make a profit and provide a return to shareholders), liquidity (to have enough cash on hand to meet short-term obligations), efficiency (to use resources in the most effective way possible), and stability (to minimize risk and uncertainty). Choice E is the only option that accurately lists all four objectives.

The Four Main Financial Objectives of a Firm Are ________