Final answer:
The financial management function of an entity is responsible for capital budgeting, capital structure management, and liquidity management, which involve making investment decisions, financing operations, and ensuring short-term financial health respectively.
Step-by-step explanation:
Three responsibilities of the financial management function of an entity include: Capital Budgeting: Determining which projects or investments the entity should engage in, by assessing potential projects for profitability and the long-term value they add to the business.
Capital Structure Management: Deciding the best mix of debt, equity, and internal financing in funding the operations and growth of the entity, while balancing risk and profitability. Liquidity Management: Ensuring that the entity has enough cash flow to meet its short-term obligations and operating expenses by managing assets and liabilities effectively.
This encompasses not just ensuring the business is profitable but also that it can sustain itself financially over the short and long term through effective planning and risk management.