I. The financial administrator, performs two stages:
• Financing (obtaining resources).
-Shareholder of a company that makes a supplementary capital contribution. The term is also used to refer to that member of a cooperative enterprise that does not provide work, but only capital.
– People or institutions that lend cash to the company on credit, sometimes do not require another guarantee from the debtors that their word and their demonstrated ability to meet their financial commitments.
– Legal entities that develop the banking business by accepting deposits of money that they then lend. In short, the objective of the banks is to obtain a benefit by paying an interest rate for the deposits they receive, lower than the interest rate they charge for the amounts of money they lend. In accounting terms, deposits are a liability for banks, since they will have to repay the money deposited, while loans are active, although sometimes they cannot recover the borrowed money.
– People or same companies that sell their raw materials to others in order to carry out the production.
• Planning and control of resources. (application and allocation of resources)
The financial administrator sets objectives in the company, based on these two stages, some examples are the following:
1. Provide customers with better products at reasonable prices.
2. Pay salaries or higher wages to their workers and administrators.
3. To give higher returns to investors that provides the necessary capital to form, and subsequently operate the company