Which of the following is not a finance activity?

• A. Capital budgeting
• B. Cash management
• C. Financial planning
• D. Facilities management

Answer: (D)

This item is testing the distinction between managing money and managing the physical plant. Finance activities focus on allocating and controlling financial resources: deciding which investments to pursue (capital budgeting), keeping enough cash on hand and managing cash flow (cash management), and outlining funding and spending plans for the future (financial planning). Capital budgeting analyzes long-term asset investments and their expected returns. Cash management is about liquidity and smooth day-to-day money movement. Financial planning involves forecasting, budgeting, and aligning resources with strategy. Facilities management, on the other hand, deals with the physical building, equipment, maintenance, space usage, and safety of the environment. While it supports care delivery, it is primarily an operations/administrative function related to the physical plant rather than a financial decision-making activity.