Discuss and describe the role of a financial manager

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1. Discuss and describe the role of a financial manger? What is the difference between accounting and finance?
Answer:
There are two main role of finance manager:
(i) To obtain funds through the financial market: The finance manager is responsible for obtaining the funds through the financial market. During this process the finance manager come across the following things:
? What financing forms and sources are available in the market?
? How can the funds be acquired efficiently and at a low cost?
? What will be the timing and form of returns and repayments to financing sources?
(ii) To see that the funds obtained are used effectively: The finance manager has to decide and lay down a plan regarding the fund allocation. These are the following things that a finance manager considers:
? To what projects and products should fund be allocated?
? What assets and resources must be acquired in order to produce the product or services?
? How should the use of funds be monitored so that they are most effectively distributed among the various Operating activities?
Difference between accounting and finance:
Accounting has a long history than finance because accounting field has its existence longer than the finance field. The main job of accounting is to prepare accounting records and then analyzing and interpretation of the four financial statements income statement, balance sheet, cash flow statement and the shareholder's equity statement. The generally Accepted Accounting Principles (GAAP) guides the accounting field and its profession with its direction and regulations.
Finance is quite different but interrelated with accounting. The study of finance includes three broad areas
(i) The short-term money market and the long-term capital markets. These capital and money markets deals with many of the topics covered in macro economics.
(ii) The capital investments. Here the capital investment focuses on the decisions of individual and financial and other institutions as they choose securities or projects for their investments portfolios, and
(iii) The managerial finance (business finance). Business finance deals with the actual management of the firm.

2. What are the benefits of the Stock Exchange? What are two of the stock exchanges in the United States and where are they located?
Answer:
When a company gets listed in a stock exchange, the listing provides increased marketability and ease of financing for the company. The confidence of public held companies gets increased due to there obligations to meet ...