Question

Which of the following can use financial concepts to improve their decisions? A.) financial professionals only B.) financial and nonfinance professionals C.) day-to-day operations managers only D.) long-term operations managers only I believe, option b is correct. Just need confirmation. Please give a short explanation supporting your answer.

Answer 1

As per my opinion finance professional can use financial concepts to improve their decision. Below are the reasons:

Only finance professional will have understanding of risk-return concept to analyze a project.

Finance professional will have better understanding about inflation rate and thereby real return and nominal return which is very critical to determine project's actual profitability.

Finance professional will have understanding of economic situation of the country and risk free rate of return which are also very critical to determine a projects acceptability.

Also, to finance a project capital is needed. A finance will be in a better position whether to use debt or equity in current economic situation.

A nonfinance professional , day-to-day operation manager or long term operation will have idea for most of the above discussed points.

Hence, option A is correct.