What is the most important goal of financial management Mcq?
The correct answer is Wealth maximization. Basic objective of financial management is Wealth maximization. It is concerned with optimal procurement as well as the usage of finance.
What is the most important goal of financial management mcq?
Wealth maximization (shareholders' value maximization) is also a main objective of financial management. Wealth maximization means to earn maximum wealth for the shareholders. So, the finance manager tries to give maximum dividend to the shareholders.
What is the important goal of financial management?
Typically, the primary goal of financial management is profit maximization. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits. This has the greatest benefit for company shareholders hoping for the highest possible return on their investment.
What is the main goal of financial management quizlet?
1.3 What is the goal of financial management? The goal of financial management is to maximize the current value per share of the existing stock.
What is the ultimate concern of financial management is mcqs with answers?
The ultimate concern of Financial Management is: to arrange the funds.
What is financial management about mcq?
Financial Management is a study of planning, designing, directing and managing the economic activities such as the utilization of capital and acquisition of the firm. To put it in other words, it is applying general management standards to the financial resources of the firm.
What is the most important financial management decision?
Investment Decisions
These decisions are considered more important than financing and dividend decisions. Here, the decision is taken regarding how investment should occur in different asset classes and which ones to avoid. It also involves whether to go for short term or long term assets.
What are the main functions of financial management Mcq?
1 Answer. Main function of financial management is Financial planning, Procurement fund and Allocation of net profit.
What is the most appropriate goal of the firm mcq?
Answer and Explanation: Wealth maximization is objective of any firm. The wealth is increase in value of the firm in long run. The value could be represented as profit also.
Which of the following should be the ultimate goal of the financial manager?
The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock.
What is the long run objective of financial management Mcq?
The long run objective of financial management is to maximize the value of the firm's common stock.
What is financial management concerned with ___?
Financial management is the business function concerned with profitability, expenses, cash and credit. These are often grouped together under the rubric of maximizing the value of the firm for stockholders.
What is financial management answer in one sentence?
Financial management is about controlling the flow of money in and out of the organization. Every business needs to sell products or services, pay expenses, balance the books, and file taxes.
What is the most important of the three financial management decisions?
Thus, the most important ones are related to money. The decisions related to money are called 'Financing Decisions. '
What are the three important decisions in financial management?
When it comes to managing finances, there are three distinct aspects of decision-making or types of decisions that a company will take. These include an Investment Decision, Financing Decision, and Dividend Decision.
What are the three key decisions of financial management?
There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions.
What are the three major function of financial management and how they are related?
The three major functions of a finance manager are; investment, financial, and dividend decisions. Firstly, the investment decision entails determining assets that the firm needs or projects it needs. Under this function, the finance manager makes capital investment decisions and working capital management decisions.
What are the four main functions of a financial manager?
Most financial management plans will break them down into four elements commonly recognised in financial management. These four elements are planning, controlling, organising & directing, and decision making.
Which is the cheapest source of finance?
Retained earning is the cheapest source of finance.
What is the main point of financial management in a firm Mcq?
The primary aim of financial management is to maximise shareholders' wealth, which is referred to as the wealth-maximisation concept.
What is the ultimate goal of a business firm is to maximize its _____?
The truth is that there is no one perfect formula for maximizing profits, and every business is unique, and what works for one may not work for another. The ultimate goal of any business is maximizing profits. Profits give a business the resources it needs to grow, expand, and remain competitive.
What does the financial structure refer to Mcq with answers?
Financial structure-
In order to meet the company's long-term and short-term capital needs, the financial structure refers to the sources of capital and the percentage of financing that comes from short-term liabilities, short-term debt, long-term debt, and equity.
What is the ultimate concern of financial management?
The correct answer is Wealth maximization. Basic objective of financial management is Wealth maximization. It is concerned with optimal procurement as well as the usage of finance. It aims at reducing the cost of funds procured, keeping the risk under control and achieving effective deployment of such funds.
What is financial management concerned with management of?
1.2 MEANING AND NATURE OF FINANCIAL MANAGEMENT
“Financial management is concerned with the efficient use of an important economic resource, namely capital funds”.
What is financial management concerned with the solution of?
Financial management is concerned with the solution of three major issues of relating to the financial operations of a firm and they are Investment, Financing and Dividend decision. Investment decision, relates to how the firm's funds are invested in different assets. Investment decision can be long term or short-term.
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