A Small Firm's Minimum Cash Balance Should Be Two Times

question 59

True/False

A small firm's minimum cash balance should be two times its average weekly sales.

Understand the legal principles underlying the formation and operation of corporations.

Identify the rights and obligations of corporations concerning debt securities and bonds.

Recognize the different types of corporate stocks and their characteristics.

Apply concepts of corporate liability and the protection of personal liability in business formation.

---

Definitions:

Top Executive Team

A group of the highest-ranking officers and decision-makers in an organization, responsible for strategic direction and overall management.

Careful Diagnosis

A thorough and meticulous assessment or analysis of a situation, problem, or condition before deciding on a course of action.

Organizational Problem

Issues or challenges within an organization that hinder its performance or achievement of goals.

Change Program

A structured plan implemented by an organization to achieve significant changes in its operations, culture, or strategy, aiming for improvements or adaptation to new challenges.