The goal of financial management focuses on the fact that
A)the company will grow in size.
B)employee salaries should increase over time.
C)the current stockholders are the owners of the corporation.
D)the firm should expand faster than its competitors.
E)the current corporate officers should be highly compensated.

Question

Quizplus · Accepted Answer

The goal of financial management is to maximize the wealth of the current shareholders, who are considered the owners of the corporation. This is achieved by increasing the value of the company through profitable operations and sound financial decision-making. Growth and expansion may be part of this, but they are not the primary focus. Similarly, while employee compensation and executive pay are important considerations, they are not the primary goals of financial management.

The Goal of Financial Management Focuses on the Fact That