What is the primary goal of financial management? Increase earnings Maximizing cash flow Maximizing shareholders' wealth d. 1. a. b. с. Minimizing risk of the firm
What is the primary goal of financial management? Increase earnings Maximizing cash flow Maximizing shareholders' wealth d. 1. a. b. с. Minimizing risk of the firm
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:mahi ig makipag kwentuhan o
siKReto na iba.
13
Nature, Purpose and Scope of Financial Management
15. Besides maximizing the wealth of the firm, what are some of the other
goals of financial management?
Multiple Choice Questions
What is the primary goal of financial management?
Increase earnings
Maximizing cash flow
Maximizing shareholders' wealth
d.
1.
a.
b.
bal
с.
Minimizing risk of the firm
xal
Proper-risk return management means that
the firm should take as few risks as possible.
2.
a.
b.
consistent with the objectives of the firm, an appropriate trade-
off between risk and return should be determined.
the firm should earn highest return possible.
the firm should value future profits more highly than current
profits.
с.
d.
Which of the following is not a major area of concern and emphasis in
modern financial management?
Inflation and its effect on profits
Stable short-term interest rates
3.
a.
b.
C.
Changing international environment
d.
Increased reliance on debt
Which of the following is not a major area of concern and emphasis in
modern financial management?
Marginal analysis
b.
4.
a.
Risk-return trade-off
Commodity trading
d.
C.
Changing financial institutions
A financial manager's goal of maximizing current or short-term
earnings may not be appropriate because
it fails to consider the timing of the benefits.
b.
5.
a.
increased earnings may be accompanied by unacceptably higher
levels of risk.
earnings are subjective; they can be defined in various ways such
as accounting or economic earnings.
d.
C.
All of the given choices.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education