Which of the following concept aims at mobilisation of financial resources at a lower cost and deployment of these in most lucrative activities?

Financial Management

The correct answer is option 3- Financial Management.

Financial Management is concerned with optimal procurement as well as the usage of finance. For optimal procurement, different available sources of finance are identified and compared in terms of their costs and associated risks. It can be stated that the financial statements of a business are largely determined by financial management decisions taken earlier. Similarly, the future financial statements would depend upon past as well as current financial decisions. Thus, the overall financial health of a business is determined by the quality of its financial management. Good financial management aims at mobilisation of financial resources at a lower cost and deployment of these in most lucrative activities.

OTHER OPTIONS

• Financial Analysis- Financial analysis involves evaluating financial data to understand an organization's performance and make informed decisions. This could involve looking at various aspects like profitability, liquidity, solvency, and efficiency.

• Financial Planning- Financial planning is essentially the preparation of a financial blueprint of an organisation’s future operations. The objective of financial planning is to ensure that enough funds are available at right time.

• Capital Budgeting- Fixed capital refers to investment in long-term assets. Management of fixed capital involves allocation of firm’s capital to different projects or assets with long-term implications for the business. These decisions are called investment decisions or capital budgeting decisions and affect the growth, profitability and risk of the business in the long run. These long-term assets last for more than one year.