A key principle underlying modern financial management is that the primary objective of a business is

Question

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The goal of maximizing shareholder wealth is a fundamental principle underlying modern financial management. It means that the firm's primary objective is to increase the value of its stock through generating profits and cash flows that will provide a return to shareholders. This objective focuses on increasing long-term shareholder value, rather than just maximizing short-term profits or minimizing costs.

A Key Principle Underlying Modern Financial Management Is That the Primary