What Is the Primary Goal of Financial Management for a Sole

question 55

Multiple Choice

What is the primary goal of financial management for a sole proprietorship?

• A)Maximize net income given the current resources of the firm
• B)Decrease long-term debt to reduce the risk to the owner
• C)Minimize the tax impact on the proprietor
• D)Maximize the market value of the equity
• E)Minimize the reliance on fixed costs

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Definitions:

Command Economies

Economic systems where the government or a central authority makes all decisions regarding production and distribution of goods and services.

Success Indicator

A measurable value or metric that demonstrates the effectiveness, achievement, or progress toward a specific goal or objective.

Quantity Of Production

Refers to the total amount of goods or services produced by a company or industry within a specific period.

Soviet Union

A former federal socialist state in Eurasia that existed from 1922 to 1991, composed of multiple Soviet republics, and known for its role in global politics, particularly during the Cold War.