Final answer:
The 'Production decision' is not a fundamental decision in financial management but rather relates to the operational aspects of a company. Financial management focuses on investment, financing, and dividend decisions which are all crucial for a firm's financial strategy.
Step-by-step explanation:
Out of the options provided, 4) Production decision is not fundamentally recognized as a decision in financial management. The core decisions in financial management that shape the financial strategy of a firm include 1) Investment decision, which involves selecting the right projects or assets to invest in; 2) Financing decision, which means deciding the best way to finance those investments, either through equity, debt, or a mixture of both; and 3) Dividend decision, which determines the proportion of earnings to be distributed as dividends to shareholders and the amount to be reinvested back into the company.
While production decisions are critical for a firm's operations, they are not directly classified under financial management. Production decisions deal with the operational aspect of a firm's behavior and may influence financial performance, but they are distinct from the financial decisions about capital procurement and allocation that confront firms, whether private or public. Examples of financial decisions include deliberating whether to issue stock, pay dividends, or reinvest profits back into the company. These decisions greatly impact the financial health and strategic direction of a business.