Which of the Following Is Not a Reason for a Firm

question 2

Multiple Choice

Which of the following is not a reason for a firm to hold cash balances?

• A)To cover routine payments and collections.
• B)To earn high rates of interest.
• C)To meet compensating balance requirements of banks.
• D)To provide a safety stock in the event of unforeseen fluctuations into cash flows.
• E)To take advantage of bargain purchases that might arise.

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Definitions:

Results-Driven Leadership

A leadership style focused on achieving specific outcomes or goals through effective planning, execution, and accountability.

Clear Norms

Established, unambiguous expectations or rules that govern behavior within a group or organization.

Team Excellence

The achievement of superior outcomes and performance by a team through effective collaboration, communication, and alignment of goals.

Standards of Excellence

Benchmarks or criteria set to measure the quality and performance of products, services, or organizational behaviors.