Question

Main function(s) of financial management is/are

• A. Financial planning
• B. Procurement of funds
• C. Allocation of net profits
• D. All of these

Hint:

Effective financial management involves a combination of planning, procuring funds, and allocating resources to ensure business sustainability and growth.

Answer 1

The Correct Option is D

Step 1: Understanding financial management.
Financial management involves various functions such as planning the financial needs of an organization, procuring funds, allocating those funds, and managing the profits to ensure the sustainability and growth of the company.
Step 2: Analyzing the options.
(A) Financial planning: Correct. Financial planning is an essential part of financial management as it helps businesses prepare for future financial needs.
(B) Procurement of funds: Correct. Procurement of funds is a key function of financial management to ensure the organization has the necessary capital.
(C) Allocation of net profits: Correct. Allocating net profits ensures that the company uses its resources effectively, reinvesting in growth or rewarding shareholders.
(D) All of these: Correct. All the listed options are part of financial management.
Step 3: Conclusion.
The correct answer is (D) All of these, as all of these activities are critical components of financial management.