Question : Read the following statements of Assertion (A) and Reason(R) and choose the correct alternative:
Assertion (A):Primary aim of financial management is to maximise shareholder's wealth.
Reason (R):Company's funds belong to the shareholders and the return earned by them determine their market value and price.
Option 1: Both A and R correct and R is the correct explanation of A.
Option 2: A is correct and R is wrong.
Option 3: A is wrong and R is correct
Option 4: Both A and R are correct but R is not the correct explanation of A.
Correct Answer:
Both A and R correct and R is the correct explanation of A.
Solution : The primary aim of Financial Management is to maximize the wealth of shareholders because companies funds belong to the shareholders and the return earned by them determine their market value and price.
Hence, option A is correct.
Related Questions
Trending Articles/News
