Which one is not the function of financial manager?
Answers
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Which of the following is not a function of finance manager?
A. mobilization of funds
B. deployment of funds
C. control over use of funds
D. manipulate share price of the company
Answer:
The correct option is (D)manipulate share price of the company
Explanation:
Financial Manager-
The person managing financial operations of an organisation is known as a financial manager. He makes sure that the funds are utilised in an efficient manner.
Functions of a Financial Manager-
Financial Planning and Forecasting :
The financial requirements of a company must be estimated by a financial management. A financial manager's role includes making decisions about how these monies will be obtained and used.
Funds Aqcuisition:
- The next stage after developing a financial plan is to raise money.
- There are numerous places where money can be obtained. Shares, debentures, financial institutions, commercial banks, etc. are a few examples of these sources.
- The choice of a suitable source requires careful consideration.
- Making the wrong financial source choice now could lead to problems later. Before making a final choice, the benefits and drawbacks of various sources should be considered.
Utilisation of Funds:
- The money ought to be put to the best possible use.
- It is important to compare the acquisition costs with the expected profits.
- The routes that produce the highest returns ought to be chosen. Selecting a project could benefit from the capital budgeting technique.
- The goal of maximising profits can only be accomplished if money is used effectively and is never left sitting around.
- When investing money, a financial manager must bear in mind the principles of safety, liquidity, and soundness.
Evaluating Decisions:
- In today's highly competitive industrial environment, numerous mergers and consolidations occur.
- A finance manager should support management in decision-making processes like valuation.
- In order to arrive at accurate valuations, he should be aware of the numerous techniques for evaluating shares and other assets.
Maintainance of liquidity:
- Every business must keep some liquidity on hand to cover daily expenses.
- The best source for keeping liquidity is cash. To buy raw supplies, pay employees, cover other costs, etc., is necessary.
- It is the responsibility of the finance manager to ascertain the demand for liquid assets and then arrange those assets such that there is never a shortage of money.
Hence, we can conclude that manipulating share price of the company is not a function of finance manager.
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