Financial managers those managers responsible for planning and overseeing the financial resources of a firm. Finance (corporate finance) the business function involving decisions about a firm"s long-term investments and obtaining the funds to pay for those investments: four responsibilities: 1. Determining a firm"s long-term investments: obtaining fund to pay for those investments, 3. Helping to manage the risks that the firm takes. Successful financial managers must distinguish between two different kids of financial outlays: short-term (operating) expenditures and long-term (capital) expenditures. Credit policy rules governing a firm"s extension of credit to customers: inventory materials and goods currently held by the company that will be sold within the year. Too little can cost a firm sales, too much means tied-up funds that cannot be used elsewhere. Raw materials inventory the portion of a firm"s inventory consisting of basic supplies used to manufacture products for sale. Work-in-progress inventory the portion of a firm"s inventory consisting of goods partway through the production process.