Which of the following is a key function of a financial manager?

A financial manager plays a crucial role in an organization by focusing on the management of a company’s finances. This involves several key functions, among which budgeting and financial analysis are foundational. Budgeting is the process of creating a plan to spend an organization’s resources effectively, ensuring that sufficient funds are available for operations, investments, and obligations. Financial analysis, on the other hand, involves reviewing and interpreting financial data to inform decision-making, assess performance, and develop strategies for growth and profitability.

These functions are vital for ensuring that the organization can meet its financial goals, allocate resources efficiently, and strategize for future financial planning. In contrast, conducting market research, managing human resources, and coordinating product development are essential business functions, but they are typically the responsibilities of marketing managers, human resource managers, and product development teams, respectively, rather than the financial manager.

Hence, the emphasis on budgeting and financial analysis distinguishes the key role of a financial manager in navigating and optimizing an organization’s financial landscape.