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What is the best criterion in evaluating the performance of a financial manager?



A. Maximization of Corporate Profits.
B. Maximizing a company s market share.
C. Maximizing shareholder wealth
D. Beating the competition.
E. Maximizing the company s share market price.

This question is part of Introduction to Financial Management
Asked by Hdtchr, Last updated: May 29, 2020

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2 Answers

F. Lopez

F. Lopez

Answered Sep 17, 2019

There are two correct answers to this question, which are C, Maximizing shareholder wealth, and E. Maximizing the company s share market price. As the name suggests, a financial manager manages the finances of a company. It helps employees learn the budget, and the financial manager is responsible for keeping the budget intact.

Other requirements of the financial manager are to look after the profits of the company. In doing so, they keep reports of all profits and loss. This ensures the company always has the most up to date information regarding their income and/or deficit. Overall, they keep the company financially safe.

 

John Smith

John Smith

Answered Mar 20, 2017

Maximizing shareholder wealth
Maximizing the company s share market price.

The market value of shares takes in to consideration both the risks of the investments and the rewards paid to shareholders.
 

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