Business Management : Corporate Management

947 Words4 Pages
The owners of business untimely intend on making profits by conducting business. They usually hire managers with the responsibility of controlling the daily operations of that business. One of the most important organizational managers is the financial manager who is responsible for the finances that are essential. The financial manager monitors and makes decisions that affect both long-term and short-term assets and liabilities using tools like capital budgeting, capital structure, and working capital management. These are important because they reflect on the financial health of the business and the potential wealth of the shareholders who own the business. The main motivator for business owners having an operating business is profit maximization. Even though corporate management tends to social responsibility, it is still spending the money of the owners to accelerate their own agenda. The finances of a business are so important that owners specifically hire a financial manager to ensure the business is maximizing profits while being capable of functioning from a financial perspective. In that role the financial manager must consider three questions: “what long-term investments should the business acquire, where will they get the long-term financing to pay for those investments, and how will you manage your everyday financial activities” (Ross, Westerfield, & Jordan, 2013)? A financial manager is responsible for answering those questions through three components called
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