Question

Which of the following statements is false regarding financial management?

Options

• Aims at ensuring availability of enough funds whenever required.

• Aims at reducing the cost of funds procured.

• Is concerned with optimal procurement as well as usage of finance.

• Facilitates price discovery for securities of company.

Answer 1

Facilitates price discovery for securities of company.

Explanation -

The primary goal of financial management is to maximise shareholder wealth. This includes a proper estimate of the finances required for various reasons, such as the purchase of long-term assets or meeting day-to-day business expenses, among others.