Question

Justify the following statement.

Finance Manager plays a vital role in Corporate Finance.

Answer 1

Corporate finance deals primarily with the acquisition and use of capital by business corporations. The term corporate finance also includes financial planning, the study of the capital market, money market, and share market. It also covers capital formation and foreign capital. Even financial organisations and banks play vital role in corporate financing.

The finance manager of any corporation has to ensure that -

1. The firm has adequate finance.
2. They are using the right source of funds that have minimum cost.
3. The firm utilizes raised funds effectively.
4. They are generating maximum returns for it’s owners.