Chapter

16.1. The Role of Finance and the Financial Manager*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. Why is finance essential to every company’s overall strategy?

   "This chapter focuses on the financial management of a firm and the securities markets in which firms raise funds. We’ll start with an overview of the role of finance and of the financial manager in t

2. How do financial managers manage cash flows and funding needs?

   "Revenues from sales of the firm’s products should be the chief source of funding. But money from sales doesn’t always come in when it’s needed to pay the bills. Financial managers must track how mone

3. What are the main responsibilities of a financial manager?

   "Financial managers have a complex and challenging job. They analyze financial data prepared by accountants, monitor the firm’s financial status, and prepare and implement financial plans. One day the

4. Why is maximizing the firm’s long-term value the financial manager’s goal?

   "How can financial managers make wise planning, investment, and financing decisions? The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly