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1. Multiple Choice: What is the primary goal of financial management? a) Profit maximization b) Shareholder wealth maximization c) Sales maximization d) Market share improvement Correct Answer: b) Shareholder wealth maximization Rationale: The primary goal is to maximize shareholder wealth, as it reflects the overall value of the company in the long term. 2. True/False: The Net Present Value (NPV) method disregards the time value of money. Answer: False Rationale: NPV accounts for the time value of money by discounting future cash flows to their present value. 3. Fill-in-the-Blank: The ________ is a financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets. Correct Ans
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