Question

Financial managers should primarily focus on the interests of: A. Stakeholders B. The Vice president of...

Financial managers should primarily focus on the interests of:

A. Stakeholders

B. The Vice president of Finance

C. Their Immediate supervisor

D. Shareholders

E. the board of directors

Homework Answers

Answer #1

Solution

Option D - Shareholders

Financial managers are hired by an organization to maximize the wealth of the shareholders. The shareholders are the owners of the organization and their money is invested in it. The shareholders expect a specific return on their investment and this can be done when the value of shares goes up.Thus the main goal of the financial managers should be to take case of the interests of the shareholders of the organization as they are owners of the firm and they have employed the financial managers for shareholders wealth maximization.

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