Who is Financial manager?
Financial manager is a person who responsible for all Financial of firm/company/organization.
In old times, finance manager maintaining records, preparing reports and raising funds when needed.
now a days, finance manager also responsible for shaping the fortunes of the enterprise, and is involved in the most financial decision. he/she must be looking out, the funds of the enterprise are utilized in the most efficient manner.
He/She must be looking looking out for wealth maximization rather then only for profit maximization.
Main function of Finance Manager are:
1) Fund Rise: In traditional approach, financial manager has limited role, they simply looking for funds raising.
in her/his, day to day activities, FM's duty is to see that the firm have enough fund to meet it's obligations.
2) Fund allocation: FM is considered a vital and an integral part of overall management. FM must be allocation of efficient funds
3) profit Planning:
4)Understanding Capital Market: capital market tie the investors and firms together, that's why FM deal with capital market, FM measure the market risk.
Goal of FM
-Profit maximization as well as wealth maximization
Profit Maximization: Profit Maximization means, give maximum output at given input or use minimum input for maximum output
In short, Profit Maximization is efficiency of firms.
-Wealth Maximization, means maximize Net Present Value, it's action to rising stakeholders value.
Financial manager is a person who responsible for all Financial of firm/company/organization.
In old times, finance manager maintaining records, preparing reports and raising funds when needed.
now a days, finance manager also responsible for shaping the fortunes of the enterprise, and is involved in the most financial decision. he/she must be looking out, the funds of the enterprise are utilized in the most efficient manner.
He/She must be looking looking out for wealth maximization rather then only for profit maximization.
Main function of Finance Manager are:
1) Fund Rise: In traditional approach, financial manager has limited role, they simply looking for funds raising.
in her/his, day to day activities, FM's duty is to see that the firm have enough fund to meet it's obligations.
2) Fund allocation: FM is considered a vital and an integral part of overall management. FM must be allocation of efficient funds
3) profit Planning:
4)Understanding Capital Market: capital market tie the investors and firms together, that's why FM deal with capital market, FM measure the market risk.
Goal of FM
-Profit maximization as well as wealth maximization
Profit Maximization: Profit Maximization means, give maximum output at given input or use minimum input for maximum output
In short, Profit Maximization is efficiency of firms.
-Wealth Maximization, means maximize Net Present Value, it's action to rising stakeholders value.
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