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Financial management is the art and science of doing what?
AManaging a firm's money so it can meet its goals
BRecording a firm's transactions in its journals
CAuditing a firm's statements for its shareholders
DMarketing a firm's products to its target buyers
Answer & Solution
Correct answer: A. Managing a firm's money so it can meet its goals
1. Financial management is the art and science of managing a firm's money so that it can meet its goals.
2. The science is analyzing numbers and flows of cash through the firm.
3. The art is judging whether resources are being used in the best way, why one form of financing beats another, and how risky each option is.
4. It is not confined to the finance department, because all business decisions have financial consequences.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.1 The Role of Finance and the Financial Manager_
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