Question

In your small business you have a finance department with a CFO, controller, and treasurer. For the following scenarios, explain which of these three financial executives would be the most likely to work on the issue based on the descriptions of the roles of the CFO, controller, and treasurer

In your small business you have a finance department with a CFO, controller, and treasurer. For the following scenarios, explain which of these three financial executives would be the most likely to work on the issue based on the descriptions of the roles of the CFO, controller, and treasurer.

Your chief marketing officer wants to take out a large loan to finance a major advertising campaign that he claims will bring in large sums of new profits over the next few years. However, your chief operating officer wants to take out a large loan to purchase some new equipment and machinery that she claims will save your company a lot of money over the next few years. You would like to see some estimates about which of the two projects will be most likely to increase profits enough to be able to pay back the loan. Who would be most likely person to look into this issue – the CFO, the treasurer, or the controller?

Answer 1

Roles of all three executives

1. CFO -He is mainly responsible for managing the finances of the company, which involves financial planning and manaeging risks.

2. Controller - He is the person responsible for day to day financial operations. He reports to CFO

3. Treasurer - The goal of treasaurer is to safeguard the finances of the company so that investments are not made irrationally.

In the above question, we can say that the role of controller is very minute. Howvere, CFO and tthe tresurer needs to look into this matter. The main person responsible will be the CFO.