Question

1- discuss the role of a financial manager in a corporate enterprise?

Answer 1

Role of a financial manager
1. He has to ensure that the right amount of funds are available at the right time. It involves estimating the right amount of funds that are required for various business operations in the long term as well for day to day operations.
2. He has to take the decisions regarding where to invest so as to earn the highest possible returns on investment.
3. He has to take decisions involve identifying various sources of funds and deciding the best combination for raising the funds.
4. He has to take decision regarding the distribution of profit or surplus of the company. He decides what proportion of the surplus to distribute as dividends and what proportion to keep as retained earnings. So, he aims at maximising the shareholders' wealth while keeping in view the requirement of retained earnings that are needed for re-investment.