Business Studies

Business Finance

Easy

What is the primary aim of financial management in an organization?

To minimize the risk of investors

To maximize the profit of company

To minimize the loss of owner

To maximize the wealth of shareholders

✅ Correct Option: 4

The primary aim of financial management is to maximize shareholders' wealth, reflected in the market price of the company's equity shares. Profit maximization is a narrower goal that ignores risk and the time value of money, so wealth maximization is the accepted objective.

2025: 29 May Shift 2

The number of times earnings before interest and taxes of a company covers the interest obligation is indicated by which ratio?

2025: 2 June Shift 2

"He is working out to ensure that enough funds are available at right time." The above statement indicates that Arun is involved in:

2026: 29 May Shift 1

Which of the following statements is NOT correct about capital structure?

2025: 22 May Shift 2

Identify the correct statement.

2025: 14 May Shift 2

Money required for carrying out the business activities is known as:

2026: 13 May Shift 1

How much of the profits earned by a company will be distributed as profit and how much will be retained in the business is affected by many factors. Identify which of the factor listed below is incorrect:

What is the primary aim of financial management in an organization?

Solution

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