Final answer:
The task of managing short-term cash needs is known as working capital management, which is crucial for ensuring a company's liquidity and ability to cover short-term expenses and obligations.
Step-by-step explanation:
One of the primary tasks of the financial manager is to manage short-term cash needs, which is known as: working capital management. Working capital management involves managing the day-to-day financial operations of a company, ensuring that the company has sufficient liquidity to meet its short-term obligations and operating expenses. This involves managing inventory, accounts receivable, accounts payable, and cash on hand. Firms may raise the financial capital needed for short-term and long-term projects through various means such as from early-stage investors, by reinvesting profits, borrowing through banks or bonds, and selling stock. Each of these methods has its advantages and considerations, such as maintaining control of the company versus the obligation of scheduled payments or diluting ownership. Therefore, financial managers must carefully consider their options for financing to ensure the sustainability and growth of the business.