alleryStart learning →What are the three key activities of the financial manager?
AAuditing, reporting and filing tax returns
BPlanning, investing and raising the money
CProducing, marketing and selling the goods
DHiring, training and paying the employees
Answer & Solution
Correct answer: B. Planning, investing and raising the money
1. Financial planning means preparing the financial plan, which projects revenues, expenditures and financing needs over a given period.
2. Investment means spending money, putting the firm's funds into projects and securities that provide high returns in relation to their risks.
3. Financing means raising money, obtaining funding for operations and investments while seeking the best balance between debt and equity.
4. Auditing and tax filing belong to accountants, and production and hiring to other departments.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.1 The Role of Finance and the Financial Manager_
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