The overall goal of the financial manager is to _________________.
A) Minimize total costs
B) Maximize net income
C) Maximize earnings per share
D) Maximize shareholder wealth

Question

Quizplus · Accepted Answer

The main objective of financial management is to maximize shareholder wealth or value. This is done by making decisions that increase the value of the company's stock price and provide a strong return on investment to its shareholders. Other objectives such as minimizing costs, maximizing net income or earnings per share do not necessarily ensure long-term value creation for the shareholders.

The Overall Goal of the Financial Manager Is to _________________