Management Notes

Reference Notes for Management

Functions of Financial Manager – 4 Major Decisions Conducted by Them | Financial Management

Functions of Financial Manager

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.

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