mso_2006
07-13-2009, 12:00 PM
THE ROLE OF FINANCIAL MANAGERS
The financial manager of a firm plays an important role in the company’s objective
and financial
success. The financial manager’s responsibilities include:
1. Financial analysis and planning: Determining the proper amount of funds to employ in the firm,
i.e., designating the size of the firm and its rate of growth
2. Investment decisions: The efficient allocation of funds to specific assets
3. Financing and capital structure decisions: Raising funds on as favorable terms as possible, i.e.,
determining the composition of liabilities
4. Management of financial resource
(such as
working capital)
5. Risk management: protecting assets
The financial manager of a firm plays an important role in the company’s objective
and financial
success. The financial manager’s responsibilities include:
1. Financial analysis and planning: Determining the proper amount of funds to employ in the firm,
i.e., designating the size of the firm and its rate of growth
2. Investment decisions: The efficient allocation of funds to specific assets
3. Financing and capital structure decisions: Raising funds on as favorable terms as possible, i.e.,
determining the composition of liabilities
4. Management of financial resource
(such as
working capital)
5. Risk management: protecting assets