What Is the Most Important Duty of a Financial Officer

question 73

Multiple Choice

What is the most important duty of a financial officer?

• A)to ensure that the firm has enough cash on hand to meet its commitments at any given time
• B)to decide how to pay for investments
• C)to manage working capital
• D)to make investment decisions

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Definitions:

Eli Lilly

An American pharmaceutical company known for developing a wide range of medications, including treatments for diabetes, cancer, and psychiatric disorders.

Endowments

Funds donated to institutions with the stipulation that the principal remains intact and only the investment income is spent.

After-Tax Rate

The rate of return on an investment after accounting for taxes, more reflective of the net gain to the investor.

Safety Of Principal

The assurance that an investment will be repaid or retained, primarily concerning the preservation of invested capital.