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Financial Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Management3 Marks
Question
State the objective of Financial Management.
✓

Answer

Wealth maximisation is the primary objective of financial management which means maximising the market value of investment in the shares of the company.It is possible only by:
  1. Ensuring availability of sufficient funds at reasonable cost.
  2. Ensuring effective utilisation of funds.
  3. Ensuring safety of funds by creating reserves, re-investment of profits, etc.

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