Outcome 1. Identify and describe the activities of a financial manager. List and

Question

Outcome 1. Identify and describe the activities of a financial manager.

List and describe four of the major activities of the financial manager. As a hint, think of the types of decisions that the top financial managers have to make in a typical corporation.(32 points) Answer:

Outcome 2. Explain how the activities of the financial manager contribute to a business or non-profit organization in achieving its objectives. 2. Describe how each of the activities you identify is related to the primary objectives of a corporation or non-profit organization; identify the objectives and be specific.(32 points)

Answer:

Explanation / Answer

Raising of the funds Finance Manager has to raise funds for investment in the business. Major type of funds are equity , Preference Shares and Debt. One has to consider various aspects like permanence , Solvency and cost of capital while selecting the source and type of funds . Major sources of equity funding would be Public issue, Private placement, Internal Accrual Etc. Major sources of debt capital are Financial institution and Public. Allocation of Funds Finance manager has to identify the investment opportunities and do the financial viability study to select those project and allocate limited funds based on relative profitability, growth and Risk of investment opportunities. Profitability Planning Once the projects are identifies and funds are allocated detailed financial planning for operation needs to be in place . Common technique used for the purpose is budgeting. Monitoring and controlling the Operational results One of the major responsibility of Finance manager is to properly monitor and control the actual results by analysing the deviations from the budget by teqniques like Std Costing Etc.

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