Determining the Appropriate Target Cash Balance Involves Assessing the Trade-Off

question 64

Multiple Choice

Determining the appropriate target cash balance involves assessing the trade-off between:

• A)income and diversification.
• B)the benefit and cost of liquidity.
• C)balance sheet strength and transaction needs.
• D)all of these options.

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Definitions:

Resource Exploitation

The utilization of natural resources or assets to their fullest potential with the goal of achieving maximum benefit while considering sustainability.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within an organization, focusing on product creation, development, and distribution.

Productive Systems

Systems designed to enhance efficiency and productivity in the production of goods or delivery of services.

Finished Products

Refer to goods that have completed all stages of production and are ready for sale or distribution to the end-user.