Financial management involves the efficient use of capital funds and considers approaches such as planning, organizing, directing, staffing, controlling, recruiting, and budgeting. The modern approach views financial management as involving financial planning, raising funds, utilizing funds, and financial control. It also considers investment decisions, financial decisions, and dividend decisions. Long-term investment decisions involve assessing the profitability of capital expenditure projects expected to provide benefits over one year, while short-term investment decisions involve working capital management to ensure profitability and liquidity.