The primary goal of financial management is to: A. Maximize current sales. B. Maximize shareholder value. C. Avoid financial distress. D. Minimize operational costs.

The primary goal of financial management is generally considered to be: **B. Maximize shareholder value.** ### Explanation: 1. **Maximize current sales (A)**: While increasing sales is important for a business, it does not necessarily lead to maximizing shareholder value. Sales can increase without profitability, which is crucial for shareholder returns. 2. **Maximize shareholder value (B)**: This is the main objective of financial management. It involves making decisions that increase the worth of the company’s shares, thereby benefiting the shareholders. This includes strategies for profit maximization, risk management, and investment decisions. 3. **Avoid financial distress (C)**: While avoiding financial distress is important for the sustainability of a business, it is more of a means to an end rather than the primary goal. Financial distress can be avoided through effective financial management, but the ultimate aim is to enhance shareholder value. 4. **Minimize operational costs (D)**: Reducing costs can improve profitability, but it should not be the sole focus. A company can minimize costs at the expense of quality or growth, which may not serve the best interests of shareholders. In summary, the overarching aim of financial management is to maximize shareholder value, making option B the correct answer.