Which of the following answers is/are correct? Financial management is concerned with the following: Managing the capital (assets and liabilities of the firm efficiently. Understanding global financial markets. Assessing, enhancing and creating value. All of the responses are correct.

ll of the responses are correct. Financial management encompasses all of the aspects listed:<br /><br />* **Managing the capital (assets and liabilities) of the firm efficiently:** This is a core function of financial management. It involves making decisions about how to acquire, allocate, and control the firm's resources to maximize its value. This includes managing working capital (short-term assets and liabilities), making capital budgeting decisions (long-term investments), and determining the optimal capital structure (mix of debt and equity financing).<br /><br />* **Understanding global financial markets:** In today's interconnected world, businesses operate in a global financial environment. Understanding how these markets function, including exchange rates, interest rates, and international capital flows, is crucial for making sound financial decisions. This knowledge helps firms access capital, manage risks, and optimize their financial performance in a global context.<br /><br />* **Assessing, enhancing, and creating value:** The ultimate goal of financial management is to maximize the value of the firm for its owners (shareholders). This involves assessing the current value of the firm, identifying opportunities to enhance that value through strategic investments and operational improvements, and creating new value through innovation and growth initiatives.<br />