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Q. What do you signify by Organisation of Finance Function? Describe the functions of Financial Manager.
Ans. Organisation of Finance Function: - Organization of finance function signifies the division of functions relating to finance and to set up a sound and efficient organization for performing the finance functions. Since the financial decisions are extremely crucial for the survival as well as growth and development of the firm. The eventual responsibility of carrying out the finance function lies with the top management. Therefore a department to organize and carry out the financial activities is created under the direct control of the board of directors.
This department is lead by a financial manager.
Nevertheless the exact nature of the organization of the finance functions differs from firm to firm depending upon many factors such as:
(i) Size of the Firm
(ii) Nature of its Business
(iii) Kind of financing operations
(iv) Capabilities of firm are financial officers etc.
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