General Studies · Objectives of Financial Management
Match the financial management objectives in LIST-I with their defining characteristics or measurement criteria in LIST-II: LIST-I (Objective/Concept) A. Primary Goal of Wealth Maximisation B. Evaluation Metric for Profit Maximisation C. Mathematical Computation of Wealth D. Fundamental Limitation of Profit Maximisation LIST-II (Defining Characteristic) I. Maximisation of the net present value (NPV) of the firm's shares II. Contribution of financial decisions to total accounting profits III. Present Value of Future Cash Flows minus Cost of Investment IV. Disregard for the risk-return trade-off and time value of money Choose the correct answer from the options given below:
- 1A-II, B-I, C-IV, D-III
- 2A-IV, B-III, C-II, D-I
- 3A-I, B-II, C-III, D-IV✓
- 4A-III, B-IV, C-I, D-II
Correct answer
A-I, B-II, C-III, D-IV
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