- 6 Marks
BMF – Nov 2019 – L1 – SB – Q2b – Investment Decisions
Explain limitations of financial objectives and ways to assess performance.
Question
(b) THREE commonly-used financial objectives of a firm are to maximise shareholders’ wealth, profitability, and growth in earnings per share. However, these three objectives have some limitations hence the saying ‘no financial target on its own is ideal’.
(i) Explain the limitations of these THREE financial objectives of the firm. (6 Marks)
(ii) State and explain THREE ways by which financial performance of a firm might be assessed. (6 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Financial objectives, Growth in Earnings, Performance Assessment, Profitability
- Level: Level 1
- Topic: Investment Decisions
- Series: NOV 2019
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