Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

The primary aim of financial management is:

Options:

Maximisation of Profit

Maximisation of personal wealth

Maximisation of social wealth

Maximisation of shareholder's wealth

Correct Answer:

Maximisation of shareholder's wealth

Explanation:

The correct answer is Option (4) → Maximisation of shareholder's wealth

The primary aim of financial management is to ensure the maximisation of the wealth of shareholders, which is reflected in the market value of the company’s shares. This goal focuses on making decisions that increase the firm’s value in the long run — such as efficient investment, financing, and dividend policies.