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Question
A Maximisation of shareholders' wealth B Maximisation of profit C Minimisation of Profit D Minimisation of shareholders' wealth
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Solution
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Correct option is C. Maximisation of shareholders' wealth
The primary aim of financial management is to maximise shareholders wealth, which is referred to as the wealth-maximisation concept. The market price of a companys shares is linked to the three basic financial decisions taken in financial management.
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