Questions Explain the differences between the CFO's responsibilities and the treasurer and controllers responsibilities
The Chief Financial Officer's responsibilities at the firm are to maximizethe firm's profit share of the marketplace by making broad and far-reachingdecisions regarding the firm's long-range goals. The treasurer'sresponsibilities are more short-range in nature, such as allocating thecosts of specific firm endeavors according to current and projectedprofits. The controller has the managerial responsibility to the CFO andthe treasurer to make sure the other human actors within the firm'scorporate structure execute both of these individual's decisionsWe claim the goal of the firm is to maximize current market value. Couldthe following actions be consistent with that goal'The firm adds a cost-of-living adjustment to the pensions of its retiredAlthough this decision may not seem to immediately maximize the firm'scurrent market value, such a necessary decision is required to ensure thefirm's integrity as an employer and to encourage excellent staff tocontinue to apply to work for the firm, as well as for current staffmembers to continue in their hard work and dedication to the firm, with the
The firm buys a corporate jet for its executives. hey will be compensated after their retirement. The investor invests in the market. At times, however, when a new technology that may be profitable opens up,or when a new and developing market opportunity is presented, it might beappropriate for the firm to take a loss to take advantage of this,temporarily increasing costs to reap greater benefits. The bank has stockholdingsin a particular financial market, and the corporation makes use of thefunds in its dealings. Thecorporation reaps the money invested by the investor by saving the funds ina bank. Reinvestment is needed at certain critical junctures, such as to improvethe technology of the firm's product or to expand its offerings abroad. Investor to financial markets, to financial intermediary, and to thecorporation. The corporation benefits from thebank's investment. Although expansions may always seem like a positive, if the firm hasalready overstretched its financial capabilities within the current marketshare it possesses, this increase may not result in an overall, long-termmaximization of the firm's earnings. An investor saves his or her money in the bank. Investor to financial markets, to financial intermediary, back to financialmarkets, and to the corporation. Consolidation rather than expansionmay be in order at particular economic times of recession, as well. Financial markets and intermediaries channel savings from investors tocorporate investment.
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Acceptance Essays
