Q.

Which of the following statement is false regarding financial management?

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a

Facilitates price discovery for securities of the company.

b

Aim at ensuring availability of enough funds whenever required.

c

Aims at reducing the cost of funds procured.

d

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

answer is D.

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Detailed Solution

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

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Which of the following statement is false regarding financial management?