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Explain how the finance manager interacts with both internal and external players.

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Final answer:

The finance manager manages crucial relationships both internally within the company and externally with investors, utilizing available financial information to attract capital from shareholders and bondholders as the firm's credibility grows.

Step-by-step explanation:

A finance manager plays a critical role in a company by managing both internal and external relationships to ensure the financial health of the organization. Internally, the finance manager interacts with various departments such as marketing, production, and human resources to create budgets, control costs, and forecast financial needs. Externally, as the firm becomes more established and its prospects for profitability increase, the need for the finance manager to have personal relationships with investors decreases due to more available information about the company's financial performance. Instead, outside investors, such as shareholders and bondholders, may provide financial capital based on the firm's publicly available financial data.

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