What does a network diagram visually represent?

A network diagram is a crucial tool in project management that visually represents the sequence and interdependencies of tasks within a project. It illustrates how different tasks are connected and the order in which they must be executed to achieve project completion. By mapping out these relationships, the diagram helps project managers understand the critical path, identify bottlenecks, and optimize scheduling.

The correct answer focuses on the diagram's primary function of showing the sequence of tasks. This understanding is vital for effective planning and execution, as it allows teams to prioritize tasks based on dependencies and timelines.

Other options touch on aspects of project management but do not accurately depict the specific function of a network diagram. For example, while milestones are important, they are often represented differently, and information flow among team members lacks a visual representation that emphasizes task order. Additionally, budgeting and resource allocation are essential in project management but are typically covered by different tools like Gantt charts or financial reports rather than a network diagram, which centers on task sequencing.