A compliance officer is responsible for ensuring that the company complies with all the international and national regulations, standard and the legal procedures that enable the operation of the business. They train and educate a company to institute those practices that will ensure high level of complying with the regulations and standards (Besley & Brigham 2013).
Main decisions made by a financial manager
Decisions in regards to investment; selecting the current and the fixed asset so as to determine how to invest in a firm is the major role of a finance manager, he decides how the company will invest, the risks associated with the investment and the projected profits.
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Financial decisions; this is where he manager is responsible for making decisions in regards to finance of the company. It is important to note that a company entrust its whole finance to the manager, equity, debt and internal financing decisions are also some of the responsibilities.
Decisions in regards to dividends; funds and surplus distribution are a decision to be made by the manager.
Ethical issues faced by financial manager
According to Zadek, Evans & Pruzan (2013), striking a balance between the demands of the company and the professional duty is an ethical issue that many financial managers face. When a company demands more than the finance manager can handle it is important to re-evaluate the ethics in finance
Client responsibility; the demands of a clients at time may cause the financial manager to forget his responsibilities so as to handle the client demands, this could impact on the company
Greed and self-interest among the financial managers; this is unethical and punishable, especially when a manager develops greed and self-interest regarding the finance of the company.
Financial reporting abuse
In any company, there are corporate advisors that give advice on how a company should invest on its finance, these corporate advisors are therefore accountable for any form of misconduct or abuse as per the financial reporting. One of the federal safeguard that was integrated into the financial system is the Sarbanes- Oxley Act; it safeguards companies from poor financial reporting and corporate advisors who are not trustworthy. Financial accounting standard board is also another regulatory body that deals with quality of financial reports
Investment options
Private company going public
A company that decides to undertake the initial public offering is in sought of growth. Initial public offering is the first time a company decides to go public; in this case, it happens to a private company. The main aim is to raise capital so as to expand its operations. The company would do this by conducting the initial public offering whereby other investors could come in and suggest on how the company could be expanded. There are advantages of going public such as rise in volume of sales, possibility of future expansion, attracting more investors and also accessing other profit making opportunities (Jenkinson & Ljungqvist 2001).
The largest U.S stock exchange
National Association of Securities Dealers Automated Quotations exchange (NASQAD) and the New York Stock Exchange (NYSE) are the larger U.S stock exchange. These two stock exchanges differ in rate of exchange, for example NYSE is more prestigious and it is consider the largest stock exchange because the rates are higher compared to NASQAD.A Company that would wish to invest privately will consider the NYSE because it has been accredited to be the most profitable investment. It guarantees security to the investors and it sets high rates so as to filter those companies that are not profitable.
Various investment products
Bank product is one of the investment options that can guarantee the owner safety when it comes to accumulating the savings. The advisory services offered in some banks can help the individual in terms of investment decision.
Retirement benefits also fall under investment product; this is a product that an individual gets after retirement. The money comes in a lamp sum and it allows an individual to invest.
Reference
Besley, S., & Brigham, E. F. (2013). Principles of finance . Cengage Learning.
Jenkinson, T., & Ljungqvist, A. (2001). Going public: The theory and evidence on how companies raise equity finance . Oxford University Press on Demand.
Zadek, S., Evans, R., & Pruzan, P. (2013). Building corporate accountability: Emerging practice in social and ethical accounting and auditing . Routledge.
