Jasmine Started a Small Business Two Years Ago

question 8

Multiple Choice

Jasmine started a small business two years ago.The business is just now seeing some success,and Jasmine notes that she has a few thousand dollars more in her bank account than she currently needs to pay her bills.However,because of the uncertainty of cash flows in her new business,she is concerned that she may need access to these funds on fairly short notice in the future.Given this situation,what should Jasmine do?

• A)put some of her excess cash into money market mutual funds
• B)use her excess cash to buy intangible assets
• C)invest the funds in common stocks
• D)keep all of these funds in her chequing account

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