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The question given is
Which of the following statements are correct?
Maximising market share is an example of a financial objective
Shareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange
Financial objectives should be quantitative so that their achievement can be measured
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3Correct answer: C (2 & 3 only)
My question is :
a) By maximizing market share, do they mean number of total shares issues by the company??
b) Increasing the share capital is a commercial objective, right?
c) If it were increasing market share PRICE, would that be a commercial or financial objective?
By maximising market share, it refers to increasing the company’s share of the total market sales or the percentage of the market that the company controls. It does not specifically refer to the number of total shares issued by the company.
Increasing share capital is a financial objective rather than a commercial objective. Share capital refers to the funds raised by a company through the issuance of shares, and increasing share capital can be a financial strategy to raise funds for business expansion or investment.
If it were increasing market share price, it would still be considered a financial objective. Increasing the market share price would typically involve strategies to increase the value of the company’s shares, such as improving financial performance or profitability.
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