Which is not a Financial Goal of a business?Answer areaProfit MaximisationCompany's Share pricesMaximizing Earning Per ShareShareholder's Wealth Maximisation
Question
Which is not a Financial Goal of a business?Answer areaProfit MaximisationCompany's Share pricesMaximizing Earning Per ShareShareholder's Wealth Maximisation
Solution
The option "Company's Share prices" is not a financial goal of a business. While a company's share price can reflect its financial health, it is not a goal in itself. Instead, it is influenced by the other three goals: profit maximisation, maximising earnings per share, and shareholder's wealth maximisation. These goals aim to increase the company's profitability and, as a result, potentially increase the company's share price. However, the share price is also influenced by external factors such as market conditions, which are beyond the company's control. Therefore, while a company's share price can be an indicator of its financial success, it is not a financial goal.
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