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A) What is the primary role of a financial manager? B) What is the best part of being a financial manager? C) How does a financial manager affect the firm’s overall strategy?

A) What is the primary role of a financial manager? B) What is the best part of being a financial manager? C) How does a financial manager affect the firm’s overall strategy?

Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 3DQ
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FROM THE PHOTO PROVIDED, ANSWER THE FOLLOWING:

NOTE: THE ANSWERS MUST BE RELATED TO THE PHOTO PROVIDED. DO NOT USE OTHER SOURCES.

A) What is the primary role of a financial manager?

B) What is the best part of being a financial manager?

C) How does a financial manager affect the firm’s overall strategy?

Let's look at what a financial manager does and what are the goals of the corporation business finance is really just a name for corporate finance what What does a corporation do what are the main jobs of the financial manager in a corporation there are three main tasks that the finance function has what long-term investments should the firm make that the capital budgeting decision where will we get the financing in order to pay for the investment that the firm wants to make that's the financing decision and how will the firm manage everyday financial activities that's the working capital decision a firm needs to invest in something it could be something physical it could be human capital and they need money to pay for that investment that money typically will be in the form of debt from bondholders creditors debt holders or equity where the shareholders put in money to give the firm it's needed capital some examples of working capital management who should we sell to on credit how much inventory should we carry how are we going to pay our suppliers that's the day-to-day management of the firm and the working capital decision the top financial manager is the CFO chief financial officer sometimes the CFO is in charge of both the Treasury function and the controller functions sometimes they're separate and again this explains the treasurer is the one who handles cash and credit management? accounting for that capital expenditures deciding on the capital expenditures financial planning the controller function is more of an accounting function looking at taxes accounting and data processing more and more the finance function is becoming a profit Center more CFOs are expected to make money in their particular function for example through exchange rates hedging exchange rates hedging commodities in other words placing bets on what prices are going to be and protecting the company from price increases or price decreases that might hurt the company more CFOs are becoming CEOs and in general the finance function is becoming more challenging for many now one of my favorite stories was a new the story in CFO magazine which by the way is a great magazine that is free it said the headline was to make investors happy to hire a woman as CFO there was a study at Boston College that found that acquisitions and secondary equity offerings when an existing company issues more new equity acquisitions and secondary equity offerings by companies with female CFOs had higher stock prices than those companies that had a man as CFO so again who knows why that result happens the the article ended by saying male CFOs we contacted said they really aren't in touch with how they feel about that now
Transcribed Image Text:Let's look at what a financial manager does and what are the goals of the corporation business finance is really just a name for corporate finance what What does a corporation do what are the main jobs of the financial manager in a corporation there are three main tasks that the finance function has what long-term investments should the firm make that the capital budgeting decision where will we get the financing in order to pay for the investment that the firm wants to make that's the financing decision and how will the firm manage everyday financial activities that's the working capital decision a firm needs to invest in something it could be something physical it could be human capital and they need money to pay for that investment that money typically will be in the form of debt from bondholders creditors debt holders or equity where the shareholders put in money to give the firm it's needed capital some examples of working capital management who should we sell to on credit how much inventory should we carry how are we going to pay our suppliers that's the day-to-day management of the firm and the working capital decision the top financial manager is the CFO chief financial officer sometimes the CFO is in charge of both the Treasury function and the controller functions sometimes they're separate and again this explains the treasurer is the one who handles cash and credit management? accounting for that capital expenditures deciding on the capital expenditures financial planning the controller function is more of an accounting function looking at taxes accounting and data processing more and more the finance function is becoming a profit Center more CFOs are expected to make money in their particular function for example through exchange rates hedging exchange rates hedging commodities in other words placing bets on what prices are going to be and protecting the company from price increases or price decreases that might hurt the company more CFOs are becoming CEOs and in general the finance function is becoming more challenging for many now one of my favorite stories was a new the story in CFO magazine which by the way is a great magazine that is free it said the headline was to make investors happy to hire a woman as CFO there was a study at Boston College that found that acquisitions and secondary equity offerings when an existing company issues more new equity acquisitions and secondary equity offerings by companies with female CFOs had higher stock prices than those companies that had a man as CFO so again who knows why that result happens the the article ended by saying male CFOs we contacted said they really aren't in touch with how they feel about that now
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