asked 25.4k views
1 vote
____ is responsible for a firm's financial activities such as planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange

(a) Treasurer.
(b) Controller.
(c) Foreign exchange manager.
(d) None of the above.

asked
User Hityagi
by
9.1k points

1 Answer

1 vote

Final answer:

The individual who oversees a company's broad financial tasks including planning, fund raising, and managing various financial assets is known as the (a) Treasurer.

Step-by-step explanation:

The individual responsible for a firm's financial activities such as planning and fund raising, making capital expenditure decisions, and managing cash, credit, the pension fund, and foreign exchange is the Treasurer.

The Controller, on the other hand, typically handles accounting-related tasks such as financial reporting, budgeting, and tax management.

A Foreign exchange manager would specifically handle foreign exchange risks and transactions, but would not have the broad financial responsibilities ascribed to the Treasurer.

Firms engage in various sorts of investments, with different levels of managerial commitment. For instance, foreign direct investment is generally more long-term and involves substantial managerial oversight, whereas portfolio investments can be adjusted or liquidated much quicker.

As firms grow and establish themselves, their financial details become more transparent, which allows external investors like shareholders and bondholders to make more informed decisions about providing financial capital without knowing the company's managers personally.

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.