A Minimum Cash Balance That a Company Must Maintain in a Bank

question 45

Multiple Choice

A minimum cash balance that a company must maintain in a bank account to continue to earn interest or to avoid service charges is referred to as a:

• A)petty cash balance
• B)connecting balance
• C)compensating balance
• D)non-sufficient funds balance

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Definitions:

Business Strategy

A plan of action or set of decisions aimed at achieving specific business objectives and gaining a competitive advantage.

Poker Strategy

An approach or set of tactics employed in the game of poker or metaphorically in negotiations, emphasizing bluffing, reading opponents, and strategic decision-making.

Machiavellianism

A personality trait characterized by cunning, strategy, and a willingness to use manipulation or deceit to achieve one's ends.

Ethical Conduct

Behavior that is consistent with a set of moral principles or standards governing the appropriate conduct for an individual or group.