mahi ig makipag kwentuhan osiKReto na iba.13Nature, Purpose and Scope of Financial Management15. Besides maximizing the wealth of the firm, what are some of the othergoals of financial management?Multiple Choice QuestionsWhat is the primary goal of financial management?Increase earningsMaximizing cash flowMaximizing shareholders' wealthd.1.a.b.balс.Minimizing risk of the firmxalProper-risk return management means thatthe firm should take as few risks as possible.2.a.b.consistent with the objectives of the firm, an appropriate trade-off between risk and return should be determined.the firm should earn highest return possible.the firm should value future profits more highly than currentprofits.с.d.Which of the following is not a major area of concern and emphasis inmodern financial management?Inflation and its effect on profitsStable short-term interest rates3.a.b.C.Changing international environmentd.Increased reliance on debtWhich of the following is not a major area of concern and emphasis inmodern financial management?Marginal analysisb.4.a.Risk-return trade-offCommodity tradingd.C.Changing financial institutionsA financial manager's goal of maximizing current or short-termearnings may not be appropriate becauseit fails to consider the timing of the benefits.b.5.a.increased earnings may be accompanied by unacceptably higherlevels of risk.earnings are subjective; they can be defined in various ways suchas accounting or economic earnings.d.C.All of the given choices.

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What is the primary goal of financial management? Increase earnings Maximizing cash flow Maximizing shareholders' wealth d. 1. a. b. с. Minimizing risk of the firm