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.

  • A

    (A) and (R) both are correct.


  • B

    (A) is correct but (R) is incorrect.

  • C

    (A) is incorrect but (R) is correct. 

  • D

    (A) and (R) both are incorrect.