Which of the following activities of a finance manager determines how the firm raises money to pay for the assets in which it invests?
A) financial analysis and planning
B) investment decisions
C) financing decisions
D) analyzing and planning cash flows

Question

Quizplus · Accepted Answer

Financing decisions are concerned with determining how the firm will finance its investments and pay for its assets. This includes decisions on issuing stocks/bonds, taking loans, and other external sources of funds. The finance manager needs to ensure that the firm acquires the funds at the most favorable terms while minimizing risks and costs associated with the financing. A and D relate to financial analysis, planning and cash flow management, which are important functions of a finance manager but not directly related to how the firm raises money. Investment decisions relates to how the firm invests its funds in different assets, rather than how it finances its investments.

Which of the Following Activities of a Finance Manager Determines