Which of the following should be the primary goal pursued by the financial manager of a firm?

Question

Quizplus · Accepted Answer

The primary goal of a financial manager should be to maximise the market value of the firm's stock or the wealth of shareholders. This aligns the interests of the manager with those of the firm's owners, and ensures that the manager is making decisions that will increase the long-term value of the firm. Maximising net income, maximising the firm's net worth, maximising dividends, and minimising expenses may all be important goals, but they should be secondary to the goal of maximising the market value of the firm's stock.

Which of the Following Should Be the Primary Goal Pursued