Which of the following is a primary goal of financial management?

The primary goal of financial management is to maximize stakeholder value. This encompasses creating value for shareholders, which generally aligns with increasing the price of the company’s stock and providing returns on investment. Stakeholders include shareholders, employees, customers, and the community, all of whom benefit from a well-managed, financially healthy organization. By focusing on enhancing value, financial management structures its strategies around investments, financing decisions, and operational efficiency in a way that ultimately contributes to the overall wealth of all stakeholders involved.

In contrast, minimizing tax liabilities, while important, serves as a strategy to improve financial outcomes rather than being a primary goal of financial management. Enhancing marketing strategies deals more with customer engagement and market position, which is not directly under the purview of financial management. Ensuring compliance with regulations, while necessary for operational integrity, is more about risk management and adherence to laws than about value creation for stakeholders.