When Business Is Profitable, Corporate Managers Will Prefer Plowback Rather

question 53

True/False

When business is profitable, corporate managers will prefer plowback rather than other sources of funding.

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Definitions:

Cash Management

Cash management is the process of collecting, managing, and investing a company's cash flow in order to meet its operational expenses and maintain liquidity.

Liquidity Management

The practice of managing assets and liabilities in such a way that an individual or firm can meet its short-term obligations.