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Role of the Financial Manager

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Role of the Financial Manager FIN 554 Financial for Managerial Decision Making July 13, 2007 Role of the Financial Manager Paper At any moment in time, a business firm can be viewed as a pool of funds. These funds come from a variety of sources: investors in the company's preferred and common shares, creditors who lend it money, and past earnings retained in the business. Funds provided from these sources are committed to a number of uses: to purchase fixed assets used in the production of a good or service, inventories used to facilitate production and sales, cash and marketable securities used for transactions and liquidity purposes, and to finance accounts receivable owned by customers. In an ongoing business, funds flow continually throughout the enterprise. The term financial management means that these flows are directed according to some plans of the firm. Therefore, this paper presents the role of financial manager in maximizing shareholder...

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