Final answer:
Strategic financial management involves proactive initiatives to improve a company's financial performance, while tactical financial management involves reactive responses to unanticipated developments and market conditions.
Step-by-step explanation:
Proactive, planned initiatives to improve a company's financial performance and secure a competitive edge are known as strategic financial management. These initiatives involve analyzing financial data, setting financial goals, and implementing strategies to achieve those goals. Examples of proactive initiatives include developing new products or services, expanding into new markets, and implementing cost-saving measures.
On the other hand, reactive responses to unanticipated developments and fresh market conditions are known as tactical financial management. These responses involve adjusting financial strategies in response to changing market conditions or unexpected events. Examples of reactive responses include reallocating resources, adjusting pricing strategies, and revising financial forecasts.