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financial functions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › financial functions

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • October 12, 2021 at 2:19 pm #637572
    shaunak22
    Participant
    • Topics: 220
    • Replies: 41
    • ☆☆☆

    shareholder wealth maximization is a primary objective of a a company listed on a stock exchange(true or false)

    the answers is TRUE

    doubt – 1) are NPO listed on a stock exchange?

    2) If they are would’t this statement be false since profit maximization is not a primary objective of npo??

    October 12, 2021 at 4:01 pm #637585
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    I assume that by NPO you mean not-for-profit organisation. If so then they are certainly not listed on a stock exchange – who on earth would want to buy their shares if there did not intend to make a profit?

    So the statement is true!!

    (I explain everything relevant for not-for-profit organisations in my free lectures on them.)

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