What is a primary example of a financial strategy?

Borrowing money is a primary example of a financial strategy because it directly affects the way an organization manages its capital and finances operations. This strategy enables a business to leverage debt for expansion, manage cash flow, or invest in opportunities that may yield higher returns than the cost of the borrowed funds. By securing loans or other forms of borrowing, businesses can finance large projects, purchase new equipment, or handle temporary cash shortages, all of which can significantly influence their overall financial health and operational capabilities.

In contrast, while cutting staff costs, increasing prices, and expanding the product range may impact the business's financial performance, they are more closely related to operational strategies or pricing strategies rather than being fundamental financial strategies on their own. Each of those options may contribute to improved financial performance, but borrowing money clearly involves strategic financial planning and decision-making that directly pertains to capital management.