Financial managers are tasked with making two key decisions in business –investment decisions and financing decisions. Basically, investment decisions are based on the fact that an individual or business has to evaluate the viability of a business idea before investing their money. A finance manager should evaluate the riskiness and the profitability of every decision made to a certain confidence level. In fact, the debt-equity ratio should aim at maximising profit while minimising costs (Cornell & Shapiro 1987).

            In preparing reports, planning investments and other accounting processes, financial managers are faced with two ethical issues. Financial managers should report accurately and prepare transparent records. In most instances, ensuring transparency and accuracy is a daunting task.