Question
Download Solution PDFWhich one of the following is the most pervasive and sustaining objectives of financial decision making?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFFinancial Management means planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to the financial resources of the enterprise.
Value maximization is the most pervasive and sustaining objectives of financial decision making.
- Value maximisation is the administrative activity concerned with determining an organization's long-term market value.
- All of an organization's financial assets, including equity, debt, preference shares, and warrants, make up its overall value.
- When a company's stock price rises on the market, its overall value rises as well.
Thus, option 3 is the correct answer.
Last updated on Jul 17, 2025
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