The goal of a financial manager is to: A) Maximize Sales B) Maximize Profits C) Maximize...
The goal of a financial manager is to:
A) Maximize Sales
B) Maximize Profits
C) Maximize value of the firm with both bond & stock holders
D) Maximize the value of shareholders
E) None of the Above
Why are the financial managers supposed to work for the shareholders?
A) Because shareholders are nice to financial managers
B) Because financial managers are owners
C) Because shareholders have voting rights
D) Because shareholders are hired by financial managers
E) None of the Above
Homework Answers
The goal of a financial manager is to:
Maximize the value of shareholders
Share holders are the owners of the company,so the financial managers are supposed to act for the benefit of share holders,then only they can increase the share price of the company.
Why are the financial managers supposed to work for the shareholders?
Because shareholders have voting rights,
as they are the owners of the business,they can vote in matters which affects their stock ownership.and to icrease the wealth of the share holders,the financial managers should work for the share holders
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