Page 6 - DBP5043

PRIMARY ACTIVITIES OF THE FINANCIAL

MANAGER

In addition to ongoing involvement in financial

analysis and planning, the financial manager’s

primary activities are (a) making investment

decisions and (b) making financing decision.

a) Investment decisions – Determine both the

mix and the type of assets held by the firm.

b) Financing decisions - Determine both the mix

and the type of financing used by the firm.

Goals/ Objectives of the Firm

The owners of the firm are normally distinct from its
managers. Actions of the financial manager should be

taken to achieve the objectives of the firm’s owners,
its stockholders. The financial managers need to

know the objectives of the firm’s owners.
1. Maximize profits

2. Maximize shareholders wealth