Question

Discuss the support extended by the Board of Directors in managing finance.

Answer 1

Board of directors are providing optimum support in Managing Finance-

A. Board of directors are entrusted with making the final decision in relation to the dividend decisions and investment decisions so they will be making the important decisions of the company which will managing financial aspect of the company

B. Board of directors are also making capital structure decisions which is important for the various projects.

C. Board of directors will also be deciding upon compensation of various employees in the organisation which will be leading to cost related decision making and they will be impacting the over of financial management

D. Board of directors will also determine the objective and the mission and the vision of the company and they will employ the necessary financial advices in order to maximize the rate of return

E. Board of directors will also finalize various decisions regarding expansion and growth and they will allocate the financial resources accordingly.

Hence, it can be said that the board of directors are of utmost importance when the various financial decisions are to be taken in regards to the company which will help in maximization of value.