As a financial manager in a corporation which of the followi

As a financial manager in a corporation, which of the following would you consider to be your primary objecttiive? A. Pursue activities that reduce the overall riskiness of the firm. B. Pursue activities that result in the largest profits for the year. C. Pursue activities that maximize your personal wealth. D. Pursue activities that maximize the current stock price. E. Pursue activities that lead to the most stable stock price for the year.

Solution

D.Pursue activities that maximise the current stock price.

the primary objective of a finance manager will be to see that the firm\'s wealth and in turn the share holders wealth is maximised by maximising the stock price.

Risk reduction is not the primary goal of finance manager.

Profit maximisation is not the primary goal of finance manager.

Maximising personal wealth is not an organisational goal.

Making the stock price stable is not the first priority of the finance manager.