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Why would a firm want to invest its idle cash?
Operating Divisions
Distinct areas within a company that are responsible for different operations, products, or markets, often treated as separate business units.
Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, and are inevitable regardless of business activity.
Return On Investment (ROI)
A financial metric used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.
Net Operating Income
A financial metric that calculates the profit generated from a company's normal business operations, excluding expenses and incomes from non-operational activities.
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