To think critically about: The goal that must always motivate the financial manager’s action.
Introduction:
Some of the senior management includes the Vice President and other Chief Financial Officer (CFO). However, the Vice President of finance manages the activities of the controller and the treasurer.
The financial management’s goal is to gain money. However, a few possible financial goals are survival, to avoid bankruptcy or distress, to minimize the profits and costs, to maximize the sales, and to maintain the stable growth in the earnings.
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Chapter 1 Solutions
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
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- What is the overall objective of financial management? Maximize cash flow Increase earnings O Maximize shareholder's wealth O Minimize risk of the firmarrow_forwardWhich of the following is the primary goal of a firm? Select one: O a. maximize stockholder wealth O b. maximize dividend payments Oc minimize expenses O d. satisfaction of suppliersarrow_forward6. The primary goal of the Financial Manager is: A. minimizing risk B. maximizing profit C. maximizing wealth D. minimizing returnsarrow_forward
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