Principles of Finance

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Chief financial officer (CFO)

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Principles of Finance

Definition

The Chief Financial Officer (CFO) is a senior executive responsible for managing the financial actions of a company. They oversee financial planning, risk management, record-keeping, and financial reporting.

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5 Must Know Facts For Your Next Test

  1. The CFO reports directly to the CEO and often has a seat on the board of directors.
  2. A key responsibility of the CFO is to ensure the accuracy of financial statements and compliance with regulatory requirements.
  3. CFOs play a crucial role in strategic planning by providing financial insights that influence corporate decisions.
  4. They are involved in capital structure management, including debt and equity financing.
  5. CFOs must be adept at using regression analysis to forecast future financial performance and identify trends.

Review Questions

  • What are the primary responsibilities of a Chief Financial Officer?
  • How does a CFO contribute to strategic planning within a corporation?
  • Why is it important for a CFO to be skilled in regression analysis?
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