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The Role of Finance |
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Back to Financial Economics Main Menu The role of finance can be described as being a three pronged approach. In the first perspective it can be seen as money borrowed from others, to be used to generate more money. In the second instance it be seen as being an investment decision where individuals and industry use capital they own to try and generate income. The third perspective it can be seen as money paid out in dividends to shareholders, on the basis of maintaining share values. THE ROLE OF A FINANCIAL MANAGER The role of any business financial manager is to ensure the business develops its investment activities to their maximum potential, whether this is in share dealings or if it is investment in plant, machinery or production capabilities. The purpose of maximizing investment potential is to generate maximum profits to reward shareholders, which in turn leads to a higher share value rating. Back to Financial Economics Main Menu |
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