Question:
What are the three major functions of the financial manager? How are they related?
Manager:
A manager is who is in charge of a department and guides other employees on how to do their work. Managers engage in hiring and recruiting new staff; they train new employees and the existing ones. For one to be a good manager, one must be good communicators, have problem-solving and critical thinking skills.
Answer and Explanation:1
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The three major functions of a finance manager are; investment, financial, and dividend decisions. Firstly, the investment decision entails...
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determining assets that the firm needs or projects it needs. Under this function, the finance manager makes capital investment decisions and working capital management decisions. Secondly, the financing decision function entails finding sources of funds to finance investments. Thirdly, the dividend decision function entails deciding on how to share the returns from investments to the shareholders.
These functions are highly interrelated. Once the manager determines the assets needed (investment decision), they have to find sources of capital (financing decision), which might be equity or debt financing. The managers have to decide on how the profits from investments will be shared to the investors (dividend decision).
