Hello steemians and esteemians it a slow sunday here allow me take a little of your time to write and educate us about the functions of a manager and their fundamental objectives of a firm,here is a more and vivid info about them...
Who is a financial manager:a manager is one who in any business makes plan for funds acquisition from both internal and external sources at the lowest cost and how these funds can be allocated ,invested efficiently and optimally to generate the desired return for the organization...
Financial manager is concerned with the efficient and wise allocation of funds.
Financial manager perform the followibg functions.
(1)determination of the assets structure:this function allows the financial managee to determine the assets structure of the organisation through the mix of asset proportion of current and long run assest suitable for the firm.
(2)Analysis and interpretation of financial data or statement:the financial data/statement of account as presented must be interpreted by the financial manager in analysing the financial data,the financial manager should be able to convert these data to some values usually ratios which are used for comparative purposes...
(3)determination of the financial structure(finance structure):the financial manager ahould be able to determine the mix of financing required by the firm organization..these mix is refferred to the proportion of short term,medium term and long term financing so the manager should be able to strike a balance so as to know which term to use effectively so there wont be mismatched of funds...
Fundamental Objectives of the firm.
1..profit maximazation:this is widely used in different firms it can be define as when revenue is greater than the cost.it also means the differences between total Revenue and total Cost...
2..wealth maximization:this is also known as value maximization or net present worth it can be define as the net percent value of its stream of expected future benefits.
3..sales maximization:mansgers is more concern with sales than profit becuase of salaries and other benefit of managers
4..cost minimization:business firms should try as much as possible to minimize cost so as to survive Risk.
5..Increased market share:this is the long run survival of the firm managers tend to secure their market share and long run survival of the firm
6...maximization of growth rate: this has to do with two dimension,i.e owners and managers interest.owners and manger has their utility functions this can be expressed as:
Mu-f(salary,power,job security,prestige and status)
Ou-f(output,capital,market share,profit and public esteem)..managers seek to maximize both their own and that of the shareholders utility funtions...
Thanks read and be educated.love lasiana