Asked by Colin dunkley on May 26, 2024
Verified
The goal of management in finance is to
A) maximize profits in the short-run.
B) maximize shareholder wealth.
C) minimize short-run costs.
D) All of the above
Maximize Shareholder Wealth
The primary objective of a company to increase the value of its shares held by its shareholders.
Management
Management entails the planning, organizing, leading, and controlling of a company's resources to achieve its goals and objectives.
Finance
The management of money and other assets, or the science of management of funds.
- Identify the primary goal of management in finance and how it influences corporate strategy.
Verified Answer
AS
Angel SantillanMay 28, 2024
Final Answer :
B
Explanation :
The primary goal of management in finance is to maximize shareholder wealth, which includes both short-run and long-run profitability. While minimizing costs is important, it is not the primary goal. Maximizing profits in the short-run may not necessarily lead to long-term value creation for shareholders.
Learning Objectives
- Identify the primary goal of management in finance and how it influences corporate strategy.