A Company That Has an Unpredictable Cash Flow,and Is Holding

question 55

Multiple Choice

A company that has an unpredictable cash flow,and is holding cash because of things that might happen due to this uncertainty,is holding a larger minimum cash balance due to which type of motive?

• A) transaction
• B) precautionary
• C) speculative
• D) common sense

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Definitions:

White Spot

A descriptive term that can refer to a localized area of lighter pigmentation on the skin, or can be used in various contexts to indicate an anomaly or specific feature.

Perceptual Organization

The process by which the human brain interprets and organizes sensory information to form a coherent, unified view of the environment.

Gestaltists

Psychologists who emphasize holistic processing and perceive psychological phenomena as organized, structured wholes.

Proximity

The physical closeness or distance of objects, which influences how people perceive and group elements in their environment.