RESPONSIBILITIES

TO ACHIEVE THE
FINANCIAL
OBJECTIVES
•INVESTING
The investment decisions should aim at
investments in assets only when they are
expected to earn a return greater than a
minimum acceptable return which also called as
hurdle rate.

The following areas are examples of investing

decisions of a financial manager:
•Evualation and selection of capital and
investment proposal.
•Determination of the total amount of funds
that a firm can commit for investment.
• Prioritization of investment alternative
• Determiation of the level of investments in
working capital.
• Determimation of fixed assets to be acquired.
• Asset replacement decision
• Purchase or lease decisions
• Restructing reorganization mergers and
acquisition
•FINANCING
The finance manager is concerned with the ways in
which the firm obtains and manages the financing it
needs to support its investments.

The finance manager will be involved in the

following finance decisions:

• Determination of the financial pattern of short

term, medium term and long term.
•Procurement of the funds through issuance of
financial instruments such as equity shares,
preference shares, bonds, long term notes and so
forth
• Arrangement with bankers, suppliers, and
creditors for its working capital, medium term and
other long term fund requirement.
• Evaluation of alternative sources of funds.

•OPERATING
The term working capital refers to a firm short-
term asset (inventory, receivable, cash,band short
term investments) and it's short term liabilities
(accounts payable, short term loans)

Some issues that may have to be resolved in relation

to managing a firms working capital are:
•The level of cash, securities and inventory that
should be kept on hand
•The credit policy