What Is the Primary Goal of Financial Management

question 7

Multiple Choice

What is the primary goal of financial management?

• A)Increased earnings
• B)Maximizing cash flow
• C)Maximizing shareholder wealth
• D)Minimizing risk of the firm

---

Definitions:

Contingency Management

An adaptive management strategy that prepares an organization to respond effectively to unexpected situations by considering various possible scenarios.

Contingency Approach

A management theory that suggests the best way to manage an organization depends on the specific circumstances and factors affecting it.

Multivariate Approach

A method in research or analysis that involves multiple variables to understand and interpret complex relationships and outcomes.

Open-System Perspective

A viewpoint in organizational theory that considers an organization as an entity that interacts with its external environment.