Business Studies

The _________ aim of financial management is to maximize shareholder's wealth, which is referred to as the wealth maximization.


ANSWER

primary


SOLUTION
The most widely accepted objective of the firm is to maximize the value of the firm for its owners, that is, to maximize shareholder wealth. Shareholder wealth is represented by the market price of a firm’s common stock.
The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm. 
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 199
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
The debentures which are duly recorded in the register of debenture holders maintained by the company and which can be transferred only through a regular instrument of transfer are called as _________ debentures.
  • A. Secured
  • B. Unsecured
  • C. Convertible
  • D. Registered

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Subjective Medium
How is interest coverage ratio computed?

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Single Correct Medium
The life of a company is not affected by the ___ of a share holder.
  • A. Death
  • B. Disability
  • C. Insolvency
  • D. All of above

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
$$\frac{Shareholder's funds}{total assets}\100$$ is a ____________.
  • A. liquidity ratio
  • B. solvency ratio
  • C. profitability ratio
  • D. credibility ratio

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 TRUE/FALSE Medium
state the following statements are True or False:
An individual can become a part of the company if the individual purchases the companies debt. 
  • A. True
  • B. False

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer