The principal role of a company's financial manager is:
A)to undertake the company's accounting and financial reporting activities.
B)to obtain the funds necessary for the capital budget and make sure they are used effectively.
C)to provide advice to the Board of Directors on the company's profitability.
D)none of the given options.

Question

Quizplus · Accepted Answer

The financial manager is responsible for managing the company's financial resources and making sure that the funds necessary for the capital budget are obtained and used effectively. They are also responsible for financial analysis and providing recommendations to the Board of Directors regarding profitability, but their main role is to manage the company's finances. Option A is incorrect as the financial manager may oversee the accounting and financial reporting activities, but it is not their principal role. Option C is partially correct, but providing advice on profitability is part of their job and not the primary role. Option D is incorrect as the financial manager plays an important role in the financial management of a company.

The Principal Role of a Company's Financial Manager Is