The primary aim of financial management is: |
Maximisation of Profit Maximisation of personal wealth Maximisation of social wealth Maximisation of shareholder's wealth |
Maximisation of shareholder's wealth |
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. |