The Goal of a Financial Manager Should Be:-

question 42

Multiple Choice

The goal of a financial manager should be:-

• A)to maximise next year's profit
• B)to minimise next year's cost
• C)to maximise the value of the existing owners' equity
• D)to take no risks with shareholders' investments
• E)None of these are appropriate goals

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variation of a set of values, indicating how much the values differ from the mean of the set.

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the weighted average of all purchases.

Median Price

The middle price in a set of prices of goods or assets, where half the prices are higher and half are lower.