"Rajeev is trying to coordinate the functioning of various departments like production and sales. He has been trying to do this with the help of a concept of financial management. He quite often calls people of both departments and tell them to work within means, he has even prescribed a budget for it. During the time, when he is doing a lot of analysis, he connects the decision of present with the outcomes of future. This can be easily seen in the two of the prominent decisions, one is the investment and the other is the financing decision. So the inter linking of these two decisions is assumed by him. When the year ends, it is easy for him to take some strong decisions. This happens because he is able to evaluate the performance of various departments in terms of revenue generated and the expenses incurred. No business is risk proof. However, he knows that at least business shocks which a business can suffer can be minimized, thus laying foundation for a better future. Less involvement in the work is definitely appreciable." Which concept of financial management has been highlighted in the above case?

Financial management Capital budgeting Capital structure Financial planning

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.