What is the primary purpose of a financial budget?

The primary purpose of a financial budget is to outline a plan for spending and revenue generation. This means that a budget serves as a strategic tool for organizations to forecast their expected income (revenue) and plan their expenditures accordingly. By setting a budget, businesses can establish financial goals, allocate resources efficiently, and ensure they have the necessary funds to support their operations and initiatives.

A well-structured budget not only aids in maintaining financial health but also aligns with the organization's overall objectives by providing a clear framework for decision-making. By projecting income and expenses, it allows for better forecasting and strategic planning, helping organizations to operate within their means and avoid overspending.

While controlling and managing cash flow is a critical aspect of financial management, it is not the primary purpose of a financial budget. Additionally, projecting future market trends and hiring additional staff could be informed by budgetary allocations but do not encapsulate the core objective of establishing a budget. Thus, option C accurately reflects the main function of a financial budget as a roadmap for financial activities.