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Right answer: Option d Explanation: The government, shareholders, and taxation department need the financial data of the company for their different needs. For example, shareholders are concerned about performance, the government about stability, and taxation about income. Explanation for the incorrect option: Option a: Both lenders and shareholders need to be certain about the cash inflows and profitability of the company. Accounting information is of no use to the company and, therefore, is incorrect. Option b: The Canada Revenue Agency is an internal oversight system, not an external user. Hence, it is false. Option c: Managers are the ones related to the company, and that’s the reason they cannot be the external party. Thus, the statement is false. Option e: The statement in option d is true, so this option is false.
Financial activities of a firm is one of the most important and complex activities of a firm. Therefore in order to take care of these activities a financial manager performs all the requisite financial activities. A financial manger is a person who takes care of all the important financial functions of an organization. The person in charge should maintain a far sightedness in order to ensure that the funds are utilized in the most efficient manner. His/Her actions directly affect the Profitability, growth and goodwill of the firm. Following are the main functions of a Financial Manager:
Related ArticlesView All Articles Authorship/Referencing - About the Author(s)The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a target="_blank" href="https://www.managementstudyguide.com/capital-structure.htm" id="next">next</a> </div> <script src="https://code.jquery.com/jquery-2.1.4.min.js" type="f199eecdb29fcc7cc2b63778-text/javascript"> <script type="f199eecdb29fcc7cc2b63778-text/javascript"> Which of the following is a role of financial managers?Financial managers generally oversee the financial health of an organization and help ensure its continued viability. They supervise important functions, such as monitoring cash flow, determining profitability, managing expenses and producing accurate financial information.
What are the 3 basic functions of a finance manager?Key responsibilities of a Financial Manager
Allocation of Funds. Profit Planning. Understanding Capital Markets.
What is the role of the financial manager in the strategic management process?Finance managers are responsible for the greater financial health of a business. Their job is to reduce expenses and maximize profits. They research and gather data to help the company make financial decisions, prepare budgets, and assist with audits.
Which among the financial manager's responsibilities is the most important?The financial manager's responsibilities include financial planning, investing (spending money), and financing (raising money). Maximizing the value of the firm is the main goal of the financial manager, whose decisions often have long-term effects.
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