Terminator, Inc

question 79

Multiple Choice

Terminator, Inc. keeps excess cash on hand in case of an industrial accident in the manufacturing of its wheat herbicide. This is an example of a ____________ for holding cash.

• A) speculative need
• B) transactions need
• C) deterministic need
• D) compensating need
• E) precautionary need

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Definitions:

Cash Flows From Operations

The amount of cash generated by a company’s normal business operations.