The only feasible purpose of financial management is

a) Wealth Maximization
b) Sales Maximization
c) Profit Maximization
d) Assets maximization

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The Correct Answer for the given question is option a) Wealth Maximization

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Answer Explanation for Question: The only feasible purpose of financial management is

Financial Management

Financial Management involves planning, organizing, directing, and controlling financial activities associated with the enterprise, such as its procurement and use of funds. It is focused on applying general management principles to the enterprise’s financial resources. Financial Management is intended to maximize the value of the firm, however in reality it is much more complicated than that. The management of the firm involves many stakeholders, including owners, creditors, and various market participants.

Main purpose of Financial Management

Financial management aims to maximize shareholder wealth by maximizing the price of a company’s common stock. Shareholder wealth maximization involves multiple external factors, such as sales, products, services, and market share. It is also known as maximization of value or maximization of net present value. The ultimate goal of the concern is to increase its market value. In finance, maximization of wealth means giving the shareholders a maximum dividend. A finance manager also aims to increase the value of the shares in the market. Shareholder value is directly related to the performance of the company. Better the performance, higher the market value of shares. The finance manager should try to maximize shareholder value.

Some of the rational of wealth maximization are;

Clear concept,
Consideration time value of money,
Both quantitative and qualitative considerations, and
Emphasis on an increase in the share price.

Lastly,

I hope after going through this post you might have clearly understood the Question: The only feasible purpose of financial management is

Short Term Financing – Characteristics , Advantages and Disadvantages | Corporate Finance

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Smirti

(Founder of Management Notes)
MBA,BBA.

I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.

I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,

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The only feasible purpose of financial management is