The primary goal of a financial manager should be to:
a. minimize operating costs
b. minimize interest payments
c. minimize tax payments
d. maximize operating income each year
e. maximize shareholders' wealth
Answer (2)
The primary goal of a financial manager should be to maximize shareholders' wealth. This focus ensures that the interests of the shareholders are aligned with the company's long-term strategies. Other goals such as minimizing costs may contribute to this end but are secondary. ;
The primary goal of a financial manager should be to maximize shareholders' wealth, as it aligns the company’s strategies with the interests of the owners. This focus ensures sustainable business practices and long-term profitability. While minimizing costs and maximizing income are important, they ultimately serve the larger purpose of increasing shareholder value.
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