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Roles and Responsibilities of Management - page 4 / 26

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Management Responsibilities

Operating Process. The operating process entails: (1) operating activities of designing products and services, marketing and delivering products, invoicing products, and servicing customers; (2) investing activities of investing in both human and capital resources; and (3) financing activities of funding investments and expenditures through internal growth, issuing stocks, or incurring debt.

Financial Reporting Process. Management should report both financial and nonfinancial KPIs that assist investors to predict the company’s future cash flows from operating, investing, and financing activities.

Compliance Process. The compliance process involves compliance with all applicable rules, regulations, laws, and standards, including regulatory, legal, tax, environmental, social, and ethical standards and best practices.

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