Question:medium

Statement I: The objective of financial management is to maximize shareholders’ wealth.
Statement II: The shareholders gain if the value of shares in the market increases.
Choose the correct option:

Show Hint

Financial management focuses on maximizing the market value of shareholders' wealth.
Updated On: Jan 13, 2026
  • Statement I is true and Statement II is false.
  • Statement II is true and Statement I is false.
  • Both the Statements are true.
  • Both the Statements are false.
Show Solution

The Correct Option is C

Solution and Explanation

Statement I accurately articulates the objective of financial management. Statement II is also valid, given that an increase in share value is advantageous to shareholders. Both statements are factually correct and interconnected.
Final Answer: (C) Both the Statements are true.
Was this answer helpful?
0

Top Questions on Financial Management and Financial Market

Questions Asked in CBSE Class XII exam