The Amount of Cash a Firm Holds to Counter the Uncertainty

question 9

Multiple Choice

The amount of cash a firm holds to counter the uncertainty surrounding its future cash needs is known as a(n) :

• A)speculative balance.
• B)compensating balance.
• C)operating balance.
• D)precautionary balance.

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Definitions:

Win-Win Conflict

A resolution strategy where all parties involved come out ahead or benefit from the solution.

Mutual Benefit

A situation or agreement in which all parties involved gain advantages or positive outcomes.

Optimising

The process of making something as effective, perfect, or functional as possible through careful adjustments and improvements.

Organisational Conflict

Organisational conflict arises when there are disagreements or incompatibilities between individuals or groups within a company, often stemming from different values, goals, or needs.