Q.
1
Assertion (A) : Shareholders Wealth Maximisation (SWM) and not the profit maximisation is an appropriate and operationally feasible financial
management goal.
Reasoning (R) : There exists a principal-agent relationship between the shareholders and the management of the company.
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A
(A) and (R) both are correct.
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B
(A) is correct but (R) is incorrect.
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C
(A) is incorrect but (R) is correct.
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D
(A) and (R) both are incorrect.