Final answer:
A controller's function involves managing the financial operations of a company, such as financial reporting and budgeting. The role is not typically associated with controlling stock prices, communication with shareholders, or interest-rate risk management. When seeking capital for expansion, firms consider borrowing or issuing stock, with each option having different implications for control and financial obligations.
Step-by-step explanation:
The function of a controller in a company is related to overseeing the accounting operations and financial reporting of the company. This includes responsibilities such as operations administration, which typically encapsulates financial statement preparation, auditing, budgeting, and various other financial management tasks. Controllers are not typically involved in controlling the stock price, communicating with shareholders directly, or managing interest-rate risk, as these tasks are often handled by other departments or roles within a financial organization, like CFOs, investor relations officers, or treasury managers, respectively.
When considering how to access financial capital for an expansion, a small firm must weigh the pros and cons of borrowing versus issuing stock. Borrowing, through banks or bonds, comes with the obligation of making interest payments but allows the company to maintain operational control. Issuing stock means selling company ownership, which can bring a surge of capital without the need for regular payments but involves giving up some control to the shareholders and a board of directors.