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It is essentially the preparation of a financial blueprint of an organisation’s future operations. Identify the related concept.
Financial management
Financial planning
Capital budgeting decisions
Dividend decision
- Option 1: Financial Management
This involves the efficient and effective management of money in order to accomplish the objectives of the organization. It includes activities like budgeting, investment analysis, and managing funding.
- Option 2: Financial Planning
This is the process of estimating the capital required and determining its competition. It is the blueprint of how the organization plans its financial activities for the future.
- *Correct Answer*
- Option 3: Capital Budgeting Decisions
This involves evaluating and selecting long-term investments to meet the goals of an organization. It includes projects like building new facilities or purchasing equipment.
- Option 4: Dividend Decision
This is determining the portion of the company's earnings that will be distributed to shareholders as dividends and the portion that will be retained in the company.
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