The Primary Goal of Financial Management Is Most Associated with Increasing

question 13

Multiple Choice

The primary goal of financial management is most associated with increasing the:

• A)dollar amount of each sale.
• B)traffic flow within the firm's stores.
• C)the fixed costs while lowering the variable costs.
• D)firm's liquidity.
• E)market value of the firm.

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Definitions:

Average Rate of Return on Investment

An investment's return expressed as an annualized percentage, calculating how much an investment has gained compared to its initial cost.

Compound Interest

The interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.

Average Rate of Return

The ratio of the average annual profit earned through an investment to the original investment, expressed as a percentage.

Total Income

The sum of all earnings or revenues a person or company generates before any deductions.