Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:
Assertion: The primary objective of financial management is to maximize shareholders wealth.
Reasoning: All decisions relating to capital structure should emphasize on increasing the shareholders wealth.
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Explanation:
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.