What is meant by "cash management"?

Cash management refers to the systematic process of collecting, managing, and investing cash to ensure that a business or individual has sufficient liquidity to meet its obligations and optimize the use of its cash resources. This includes monitoring cash flow, ensuring that there is enough cash available for day-to-day operations, and making decisions about how to invest surplus cash in the short term to earn returns while maintaining liquidity. By effectively managing cash, entities can avoid the pitfalls of cash shortages, reduce financing costs, and maximize the efficiency of capital management.

In the context of the other options, sales strategies pertain to marketing and business development rather than the direct handling of cash. Tracking stock prices is focused on investment and market behaviors, and evaluating financial software relates more to the tools used for financial management rather than the actual management of cash itself. Thus, these alternatives do not align with the core concept of cash management, which is fundamentally about overseeing cash flow to maintain financial stability and operational efficiency.