Question

What is th? primary objective of financial management ? Why ?

Answer 1

Dear Student,

The primary objective of financial management is to maximise the wealth of the owners of the buisness. Wealth Maximisation means to increase the capital invested in the buisness by the shareholders. It is possible only when market price of the shares rises as they are the index of capital invested. Wealth Maximisation serves the interest of the company in best manner and leads to higher profits which is the main goal of any buiness organisation.

Regards.