ACTIVITY 1

1. What is finance

The process of raising capital or finances for any type of spending is known as finance. It is the
act of directing various financial resources such as credit, loans, and invested capital to those
parts of the economy that need them most or can use them most effectively.

2. Discuss the functions of finance manager.

A financial manager is, by definition, someone who keeps an eye on the organization's finances
and works to assure its sustainability. They oversee a number of crucial tasks, including
managing spending, producing correct financial data, and developing profit-maximizing
strategies.

3. What are the importantance of financial management? Explain each

Assists in acquiring and managing funds. Helps in funds allocation. Provides insights to make
critical financial decisions. Cuts down financial costs.

Capital budgeting. Relates to identifying what needs to happen financially for the company to
achieve its short- and long-term goals.

Capital structure. Determine how to pay for operations and/or growth.

Working capital management.