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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Definitions:

Qing Dynasty

The last imperial dynasty of China, lasting from 1644 to 1912, which was characterized by expansion, prosperity, and a rich cultural development.

Guan Yu

A legendary Chinese general from the late Eastern Han dynasty, venerated in Chinese folklore, who is celebrated for his loyalty, righteousness, and bravery.

The Romance of the Three Kingdoms

A classic Chinese historical novel attributed to Luo Guanzhong, detailing the turbulent years near the end of the Han Dynasty and the Three Kingdoms period.

Explanatory Inscription

Texts or engravings found on monuments, artworks, or artefacts that provide context, information, or explain the subject matter they accompany.