What is the primary aim of financial management? (2024)

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A

Minimisation of shareholders' wealth

B

Maximisation of shareholders' wealth

D

Minimisation of Profit

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Solution

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Correct option is C. Maximisation of shareholders' wealth
The primary aim of financial management is to maximise shareholders wealth, which is referred to as the wealth-maximisation concept. The market price of a companys shares is linked to the three basic financial decisions taken in financial management.

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What is the primary aim of financial management? (2024)
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