Functions of Financial Manager
A financial manager is responsible for the following functions:
1) Investment decision:
Investing decisions involve accepting or rejecting long-term projects. A long-term investment project is one that involves acquiring, modifying, or replacing assets.
A large portion of the cash outlay for long-term assets must be made at present, but the benefits will only be generated in the future. It is risky to invest in long-term projects since future benefits cannot be predicted with certainty.
An investor’s long-term return and risk should first be estimated by the financial manager. His next step is to evaluate the investment proposals both from a return perspective and from a risk perspective.