What are the primary functions of a financial manager?

The primary functions of a financial manager focus on three key areas: making investment decisions, financing decisions, and managing working capital.

Making investment decisions involves evaluating potential investment opportunities to determine their viability and alignment with the company's strategic objectives. This includes analyzing projects or assets to assess their expected return on investment and risk profiles.

Financing decisions pertain to how a company raises funds to support its operations and growth. This involves determining the optimal mix of debt and equity financing, assessing the costs associated with each type of funding, and managing relationships with investors and lenders.

Managing working capital is crucial for ensuring that the company can meet its short-term obligations and maintain operational efficiency. This entails monitoring and controlling current assets and liabilities, optimizing inventory levels, and ensuring adequate liquidity.

The correct answer captures these essential roles that a financial manager plays within an organization, emphasizing their overarching responsibility for financial health and strategic resource allocation. The other options, while describing important aspects of business operations, do not reflect the specific tasks typically associated with a financial manager's role.