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

---

Definitions:

Marketing Metrics

Quantitative measurements used to gauge and evaluate the effectiveness of marketing strategies and initiatives, such as return on investment (ROI), customer acquisition cost, and conversion rates.

Differentiation Focus

A business strategy that targets a specific market segment, offering unique features that appeal to its particular preferences or needs.

Generic Business Strategies

Broad marketing approaches or plans that businesses can use to attain competitive advantage, typically classified into cost leadership, differentiation, and focus strategies.

Four Actions Grid

A strategic tool used in blue ocean strategy to redefine the value proposition by determining what to eliminate, reduce, raise, and create.