Identify the concept that is concerned with optimal procurement as well as the usage of finance.

Financial Management

The correct answer is option (3) : Financial Management

All finance comes at some cost. It is quite imperative that it needs to be carefully managed. 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. Similarly, the finance so procured needs to be invested in a manner that the returns from the investment exceed the cost at which procurement has taken place. Financial Management aims at reducing the cost of funds procured, keeping the risk under control and achieving effective deployment of such funds.

Certainly, here are brief explanations of the other concepts mentioned:

1. Financial Planning: Financial planning is the process of creating a roadmap for an individual or organization's financial future. It involves setting financial goals, identifying resources needed to achieve those goals, and developing strategies to reach them. Financial planning considers factors like income, expenses, investments, and savings to ensure that financial objectives are met.

2. Financing Decision: Financing decisions pertain to how an organization chooses to fund its operations and investments. This involves deciding on the mix of equity and debt financing, as well as the specific sources of funds. It's a critical aspect of financial management, as it affects the cost of capital and influences the organization's risk and return trade-offs.

4. Financing Alternative: Financing alternatives refer to the various options available to an organization when it comes to raising funds for its activities. These alternatives could include issuing equity shares, taking on debt through loans or bonds, utilizing retained earnings, or seeking other sources of financing. The choice of financing alternatives depends on the organization's specific needs and circumstances.