Which of the following describes a financial crisis?

A financial crisis is defined as an event that significantly affects an organization's financial stability, which is precisely what the correct answer highlights. This type of crisis can stem from various causes, such as sudden market shifts, significant losses in revenue, or unexpected expenses that strain the organization’s resources. The implications of a financial crisis can be severe, leading to layoffs, budget cuts, or even bankruptcy if not addressed promptly and effectively.

In contrast, the other options do not align with the definition of a financial crisis. A lack of public interest refers more to issues of engagement and reputation rather than financial stability. A minor budget issue indicates a manageable problem that does not typically threaten the overall financial health of an organization. Similarly, a planned budget expansion suggests proactive financial management rather than a crisis, as it involves strategic decisions to allocate more resources towards growth rather than dealing with financial instability.