The Main Reason Why Companies Want to Maintain a Minimum

question 249

Multiple Choice

The main reason why companies want to maintain a minimum cash balance is:

• A)cash,in and of itself,can earn a very high rate of return.
• B)they are required by law.
• C)to make sure there is a pool of cash available to deal with an expected need.
• D)the balance sheet always needs to reflect a cash balance.

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