Regarding the goal of financial management


Question 1: Which of the following statements is true regarding the goal of financial management?

A. A U.S. company considering international operations will have a different goal than a company that only conducts operations in the U.S.

B. The firm's structure (i.e. corporation, sole proprietorship, partnership) is not relevant to the goal of financial management.

C. A way of aligning management goals to shareholder's interest is to tie managerial compensation to the market value of the firm's stock.

D. None of the above are true.

Question 2: Market values reflect which of the following:

A. The amount someone is willing to pay today for an asset.

B. The value of the asset based on generally-accepted accounting principles.

C. The asset's historical cost.

D. A and B only.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Regarding the goal of financial management
Reference No:- TGS01835900

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)