Correct Answer: (C) Both art and science

Explanation of the correct option:
Financial management is both an art and a science. It is considered a science because it has a systematic body of knowledge consisting of principles, theories, and techniques related to financial decisions, investment, capital budgeting, and financial analysis. These principles provide a logical and analytical framework for decision-making.

At the same time, financial management is also an art because the practical application of financial principles requires skill, experience, judgment, and creativity. Financial managers must take decisions according to changing business conditions, risk, uncertainty, and organisational objectives. Therefore, successful financial management depends not only on theoretical knowledge but also on managerial ability and practical skill.

Explanation of incorrect options:
(A) Art — This is incorrect because financial management is not only an art. Along with practical skill, it also has systematic principles and scientific methods.

(B) Science — This is incorrect because financial management is not purely a science. The application of financial principles requires human judgment, experience, and managerial skill.

(D) None of these — This is incorrect because financial management clearly possesses the characteristics of both art and science.

Conclusion:
Thus, financial management combines scientific principles with practical managerial skills and judgment. Hence, financial management is both an art and a science, making option (C) the correct answer.

Financial management is

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