Which of the following best describes the ultimate task of the financial managers?
A)Profit maximization
B)Risk minimization
C)Maximization of shareholders' wealth
D)None of the above

Question

Quizplus · Accepted Answer

The ultimate task of financial managers is to maximize shareholders' wealth, which takes into account not only profits but also the risk involved in achieving those profits. While risk minimization is important, it is secondary to the goal of maximizing shareholders' wealth. Profit maximization is also important but not always the best approach, as it may involve taking on excessive risk or sacrificing long-term growth for short-term gains.

Which of the Following Best Describes the Ultimate Task of the Financial