Final answer:
A financial manager's major duties are to make investment decisions, make financing decisions, and manage cash flow from operating activities; hence, the answer is D) All of the above. The role is essential for balancing funding needs and shareholder interests.
Step-by-step explanation:
The major duties of a financial manager include making investment decisions, making financing decisions, and managing cash flow from operating activities. Therefore, the correct answer is D) All of the above. Financial managers play a critical role in a company's growth and sustainability by overseeing investment strategies, determining the best mix of debt, equity, or internal financing, and ensuring that the operation's cash flow is both stable and optimizing the company's liquidity. They must balance the need for funding against the wishes of shareholders, who might be opposed to certain methods of financing due to the potential dilution of their shares or the risk involved.
For instance, if a firm needs to raise financial capital for a project, it may choose to borrow from a bank, issue bonds, or issue stock. Borrowing through banks or bonds requires the company to commit to fixed interest payments but allows the firm to retain control over operations. However, issuing stock involves selling a portion of the company's ownership and becoming accountable to a board of directors and the shareholders.