The Primary Goal of Financial Management Is to

question 33

Multiple Choice

The primary goal of financial management is to

• A)maximize current dividends per share of the existing stock.
• B)minimize operational costs and maximize firm efficiency.
• C)maintain steady growth in both sales and net earnings.
• D)maximize the current value per share of the existing stock.
• E)avoid financial distress.

Calculate budgeted material needs and understand raw material inventory management.

Calculate budgeted purchases based on sales and inventory requirements.

Understand factors influencing the preparation of a sales budget.

Recognize the structure and purpose of financial budgets including cash, sales, and merchandise purchases.

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.

Missing Value

A data point that is not recorded or is absent in a data set or analysis.

Simple Interest

Interest calculated on the principal amount of a loan or deposit without compounding.

Daily Closing Balance

The total amount in an account at the end of each day, taking into account all transactions and activities of that day.