Question

Which of the following is the goal of financial management?

• A. Maximise the wealth of Equity shareholders
• B. Maximise the wealth of Preference Shareholders
• C. Maximise the wealth of Debenture holders
• D. All of the above

Answer 1

The correct option is A

Maximise the wealth of Equity shareholders

Answer (A): Maximise the wealth of equity shareholders.

Explanation: the ultimate goal of the business entity is to earn profits and increase the wealth of the shareholders because this is the main objective of businesses.

Also see:

• What Is the Role of Financial Management?
• MCQs on Financial Management
• Scope of Financial Management