What does Financial Management primarily involve?

Financial Management primarily involves planning processes that include setting goals and strategies, which is essential for guiding an organization's financial activities toward achieving its objectives. This includes assessing and managing resources effectively, forecasting future financial conditions, and developing strategies to achieve both short-term and long-term financial goals.

In this context, the strategic aspect is crucial as it involves making informed decisions about where to allocate resources, how to manage debt, or when to invest in growth opportunities.

Other choices do not encompass the full scope of Financial Management. Setting unpredictable financial goals contradicts the need for strategic planning in finance. Analyzing only past financial performance falls short, as Financial Management also considers future projections and current conditions. While eliminating unnecessary expenses is a valuable aspect, it does not reflect the comprehensive planning process that defines Financial Management.