Financial Manager

In Principles of Corporate Finance a financial manager's role is to answer two questions: 1) Which Real assets should the firm invest in? 2 How should the cash for the investment be raised?

1. The flow starts when the firm sells securities to investors to raise cash
2. The cash is used to purchase real assets
3. If the firm does well, the return on these assets generate cash flows that more than repay the initial investment
4. 1. This cash can be reinvested in the firm
   2. Or return to the investors who bought the securities

Three types of financial managers exists:

1. The Treasurer, responsible for cash management, raising capital and banking relationships, common in small firms
2. The Controller, responsible for preparation of financial statements, accounting and taxes, next step for larger firms
3. The CFO, responsible for financial policy and corporate planning, required for still larger firms