Final answer:
The treasury functions within an organization include cash management, funding and capital structure, investment management, and risk management.
Step-by-step explanation:
The treasury functions within an organization are designed to manage the financial aspects of the organization efficiently. There are four main treasury functions:
- Cash Management: This function involves managing the organization's cash flow, including receivables and payables, to ensure sufficient funds are available for daily operations and to meet financial obligations.
- Funding and Capital Structure: This function focuses on raising capital for the organization through various methods, such as issuing debt or equity, to finance its operations and investments.
- Investment Management: This function involves managing the organization's surplus funds by investing them in different financial instruments, such as stocks, bonds, or money market instruments, to earn a return on investment.
- Risk Management: This function involves identifying and managing financial risks faced by the organization, such as interest rate risk, foreign exchange risk, or credit risk, to protect the organization from potential losses.
By performing these treasury functions effectively, the organization can ensure optimal financial management, maximize profitability, and minimize financial risks.