The Two Models of Natural Purposes Discussed in the Text

question 12

Multiple Choice

The two models of natural purposes discussed in the text are the __________ Model and the __________ Model.

• A) Efficiency; Fitness
• B) Pleasure; Desire Satisfaction
• C) Natural Law; Positive Law
• D) Empirical; Conceptual

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Definitions:

Transaction Motive

The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.

Speculative Motive

The intention to hold cash or other assets in anticipation of future market fluctuations to gain financial advantages.

Collection Float

The time period between when a check is deposited and when the funds become available in the recipient's account, affecting the cash flow and liquidity.

Float Management

The practice of managing the time between when a check is deposited and when it clears, to optimize the use of funds.