What is a primary responsibility of a financial manager?

A primary responsibility of a financial manager involves making investment decisions, which are critical for the overall financial health and growth of an organization. Financial managers assess various investment opportunities, analyzing potential risks and returns to determine the best allocation of resources. This includes decisions about acquiring new assets, investing in projects, or managing portfolios of securities.

In the context of financial management, investment decisions lead to capital budgeting, where a financial manager decides how to invest the firm's capital most effectively. These decisions directly impact the organization's ability to grow and generate profits, making them essential to their role within the company. This focus on maximizing shareholder value and ensuring that funding is used strategically underscores the importance of investment decision-making in financial management.