The decisions made by financial managers should all be ones which increase the:
A)size of the firm.
B)growth rate of the firm.
C)market value of the existing owners' equity.
D)marketability of the managers.
E)financial distress of the firm.

Question

Quizplus · Accepted Answer

Financial managers are responsible for making decisions that will ultimately benefit the owners of the company. Therefore, the most important goal should be to increase the market value of the owners' equity, which will benefit them directly. Increasing the size of the firm or its growth rate may not necessarily lead to an increase in the value of owners' equity. Similarly, decisions that prioritize the marketability of managers or lead to financial distress for the firm would not be beneficial for the owners.

The Decisions Made by Financial Managers Should All Be Ones