What is the primary goal of financial management?a.Maximizing profitsb.Minimizing costsc.Maximizing shareholder wealthd.Achieving market dominance

The primary goal of financial management is c. Maximizing shareholder wealth.

Here's why:

a. Maximizing profits: While this is an important aspect of financial management, it is not the primary goal. Profit maximization does not take into account risk or the timing of returns, both of which are critical factors in financial decision making.

b. Minimizing costs: Cost minimization is a tactical objective, not a strategic one. While it's important to control costs, doing so should not come at the expense of long-term growth opportunities.

c. Maximizing shareholder wealth: This is the primary goal of financial management. Shareholder wealth is represented by the market price of a company's common stock, which, in turn, is a reflection of the company's investment, financing, and dividend decisions.

d. Achieving market dominance: While market dominance can lead to increased shareholder wealth, it is not the primary goal of financial management. Market dominance can sometimes lead to anti-