Q: The primary goal of financial management is to
- 1Expand their share of the marketfalse
- 2Maximize the current value per share of the existing stocktrue
- 3Examining whether costs are reasonable or unreasonablefalse
- 4All the abovefalse
- Show AnswerHide Answer
Answer : 2. "Maximize the current value per share of the existing stock"
Answer: B) Maximize the current value per share of the existing stock Explanation: The primary goals of financial management dwell on both short-term and long-term activities that seek to maximize value creation from scarce financial resources. And then the primary goal of financial management is to Maximize the current value per share of the existing stock. All businesses aim to maximize their profits, minimize their expenses and maximize their market share. Here is a look at each of these goals. Financial management is a process that enables a business to plan, direct, organize, monitor and control its current and future financial resources and events. It involves applying the basic principles of management in financial activities such as purchases, sales, capital expansion, inventory valuation, financial reporting, and profit distribution.