Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management? a. increase in the amount of the quarterly dividend. b. decrease in the per-unit production costs. c. decrease in the net working capital. d. increase in the number of shares outstanding.
e. increase in the market value per share.

The best illustration of a firm adhering to the goal of financial management is:

b. Decrease in the per-unit production costs

Explanation:

Financial management is the process by which a firm plans, controls and monitors their financial resources to ensure that the cost is minimized, while at the same time maximizing their profit. Since financial resources is the fuel that drives a business, its usage has to be managed to ensure short-term and long-term financial success. This is done by increasing the value creating efficiency with very minimal financial resources. To achieve the goal of financial management, various strategies have to be applied to achieve this goal. They include;

1. Financial planning: good financial management indicates that a firm needs  have prior information on how their business operates. With this information, the financial managers can therefor plan for the future. Each firm has it's organizational and operational financial needs. These needs if known earlier, a financial plan can be drafted and implemented to adequately meet these needs.

2. Budgeting: this is a tool that can be used to know how much a firm is willing to spend in terms of cost. Budgets are usually broken down into categories in order to know which sectors utilize the highest amount of financial resources to minimize wastage.

3. Risk management: a firm needs to first assess sources and levels of risk, then mitigate against the risk. Risk mitigation if done appropriately can help save on costs associated with the risk.

4. Monitoring: all the strategies applied need to be constantly evaluated to ascertain that they are productive. This is beneficial in determining the strategies that work and those that need improvement.

In our case the best illustration of a firm adhering to the goal of financial management is a decrease in the per-unit production costs.

answer; ///i believe the correct answer is (c) laissez-faire;

hello the answer is d