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Asked a question 4 years ago

how entrepreneurs can be financial managers and what role they can play in financial management as financial managers ?

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if an entrepreneur has to act as a financial manager then he has to take all financial related decisions and perform all financial functions . he has to plan how required funds for the company can be raised and allocate such funds into various business activities like production,marketing , distribution etc. he has to continuously monitor and control the outflow and inflow of funds in the company . he is responsible for how efficient and effectively funds are used in the company that can help for shaping the fortune the company. financial management is basically managerial activity that focuses on managing utilisation of  the funds provided by shareholders of the company . generally 3 major decisions has to be taken by entrepreneur while being a financial manager they are as follows :

  1.  investment decisions - this decision is taken regarding utilizing and investing company 's funds in different assets (long term assets and short term asset ) and projects of the company .
  2. financing decisions - this decision is related to choosing the sources of finance which suits the fund requirement of the company . a proper capital budgeting is done by the manager and decide the ratio of debt and equity in its capital .
  3. dividend decision - it decides what proportion of profits earned by the company should be distributed as divided and what proportion it should be kept aside as retained earnings .