What is the financial manager's goal in selecting investment projects for the firm?
Answer and Explanation: The key goal that a financial manager should examine while selecting investment projects should be maximizing shareholders' value. This can be achieved by maximizing the value of an entity's assets.
The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock. A private company's value is the price at which it could be sold.
Typically, the primary goal of financial management is profit maximization. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits. This has the greatest benefit for company shareholders hoping for the highest possible return on their investment.
Financial managers use financial statements and other information prepared by accountants to make financial decisions. Financial managers focus on cash flows, the inflows and outflows of cash. They plan and monitor the firm's cash flows to ensure that cash is available when needed.
Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization.
The primary goal of financial management is to maximize the current value of the existing stock. Any management action that is contrary to this goal would be an acceptable answer.
The goal of a financial manager is to maximize the wealth of the shareholders (they implement this by maximizing the value of the company's assets). It is the correct goal because shareholders are the owners of the firm.
- Investment decisions.
- Financial decisions.
- Dividend decisions.
Answer and Explanation: The three major functions of a finance manager are; investment, financial, and dividend decisions. Firstly, the investment decision entails determining assets that the firm needs or projects it needs.
The correct answer is a. The financial manager's most important job is to make the firm's investment decisions. This, also known as capital budgeting, is the most important job for this type of manager. This individual has to look at and prioritize investment alternatives.
Which would be part of a financial manager's investment decision?
An investment decision revolves around spending capital on assets that will yield the highest return for the company over a desired time period. In other words, the decision is about what to buy so that the company will gain the most value.
The correct answer is b. maximize the current value per share . Financial managers are shareholder agents.
The appropriate goal for the financial manager can thus be stated quite easily: The goal of financial management is to maximize the current value per share of the existing stock. The goal of maximizing the value of the stock avoids the problems associated with the different goals we listed earlier.
Among the options provided, keeping an up-to-date record of past operations (option A) is generally considered the least important of the financial manager's responsibilities.
Financial managers are responsible for developing and implementing a firm's financial plan, monitoring cash flow and managing excess funds, and budgeting for expenditures and improvements.
In conclusion, the three most common reasons for financial failure are lack of financial planning, ineffective cost management, and insufficient market research. Firms that proactively address these issues increase their chances of achieving and maintaining financial stability.
As Finance Manager, your responsibilities will include overseeing end-to-end finance operations, financial planning and analysis, balance sheet reconciliations, looking to make improvements to procedures and controls, as well as ad-hoc projects and requests as and when they come up.
1. The three basic questions a financial manager must consider are capital budgeting, capital structure, and working capital management.
Final answer: Financial managers are primarily responsible for preparing the balance sheet and income statement for a firm. They also participate in financial planning and forecasting, capital budgeting, and risk management activities.
Explanation: because the basic functions of an finance management is to finance,budget and market. forecasting requires from all the sources like production department, sales department and manufacturing department. therefore, forecasting is not a function of finance manager.
Which of the following is not a key function of financial management?
The correct answer is (c) because internal control is a function of the controller s office. Answers (a), (b), and (d) are incorrect because the functions of financial management include: financing, capital, budgeting, financial management, corporate governance, and risk management.
The goal of financial management is to maximize a company's shareholder value by making the best possible decisions about how to use its financial resources. There are three primary types of financial decisions that financial managers must make: investment decisions, financing decisions, and dividend decisions.
Financial management is all about monitoring, controlling, protecting, and reporting on a company's financial resources. Companies have accountants or finance teams responsible for managing their finances, including all bank transactions, loans, debts, investments, and other sources of funding.
