Raising and managing of funds by business organizations.
Such activities are usually the concern of senior managers, who must use financial forecasting to develop a long-term plan for the firm. Shorter-term budgets are then devised to meet the plan's goals. When a company plans to expand, it may rely on cash reserves, expected increases in sales, or bank loans and trade credits extended by suppliers. Managers may also decide to raise long-term capital in the form of either debt ( bond s) or equity ( stock ). The value of the company's stock is a constant concern, and managers must decide whether to reinvest profit s or to pay dividend s. Other duties of financial managers include managing corporate finance ; inventory .