Final answer:
C. optimize the firm's profitability.
The main objective of financial planning is to optimize a firm's profitability by effectively managing budgets, investments, and risk to support informed financial decision-making.
Step-by-step explanation:
The overall objective of financial planning is to optimize the firm's profitability.
Financial planning involves budgeting and balancing income with expenditures and is critical for making informed decisions that contribute to a firm's success.
Financial institutions, investment strategies, and risk management all play a significant role in financial planning. Firms must also weigh the costs and benefits of borrowing through instruments like bonds and stocks to finance various projects which are expected to contribute to future profits.
The overall objective of financial planning is to optimize the firm's profitability. Financial planning involves setting financial goals, creating budgets, and allocating resources to maximize profits.
It includes analyzing the firm's finances, identifying opportunities for growth, and making strategic decisions to enhance profitability.