Question
The financial manager has three major tasks. These involve making decisions about capital budgeting, capital structure and working capital management. As I indicated earlier, the
The financial manager has three major tasks. These involve making decisions about capital budgeting, capital structure and working capital management. As I indicated earlier, "the acquiring funds" part or "the finding the lowest cost funds" part corresponds to capital structure decision. Should the firm borrow money from the bank, issue bonds or stocks to generate funds? This would be a capital structure decision. Finding profitable investments part of "finding those investment projects with the highest return adjusted for risk" part belongs to capital budgeting decisions. Working capital management decisions refer to doing both in the short-term, managing short-term assets such as inventories and short-time liabilities such as paying cahs to suppliers. Your third question is the following: Briefly explain the three major tasks of the financial manager. Be sure to use examples that are original to your answer.
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