FINANCIAL MANAGER is a person who is capable to manage all the financial workings and its related decision for an organisation that he is working for or dedicated to
PRE MODERN ERA FINANCIAL MANAGER was foremost a salesman he was generally perceived to be the buyer of the capital or the financial resources for a firm at the lowest possible cost with the motive or objective of maximizing the profits of the organisation.
POST MODERN FINANCIAL MANAGER is foremost a seller his aim is not to reduce the cost of the capital that he buys but to maximize the selling price of the financial goods.
NOW came the question as to why such change in views over two different time periods what was so different ?
THIS CHANGE IN VIEW CAME ABOUT FOR TWO REASONS
1)The minor reason is that viewing the financial manager as a salesman trying to sell his products at the highest price casts his role in a different light. As the merchant does not want to sell low-quality products but products that respond to the needs of his customers, so the financial manager must understand his capital suppliers and satisfy their needs without putting the company or its other capital suppliers at a disadvantage. He must sell high-quality products at high prices.
2)The more important reason is that when a financial manager applies the traditional approach of minimising the cost of the company’s financing too strictly,erroneous decisions may easily follow. The traditional approach can make the financial manager short-sighted, tempting him to take decisions that emphasise the short term to the detriment of the long term.
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3 Comments. Leave new
Good effort!
Well explained.
Nice effort.. You explained nicely..