In Traditional Working Capital Analysis,holding a Large Cash Balance Is

question 46

Multiple Choice

In traditional working capital analysis,holding a large cash balance is:

• A)a positive strategy because it reduces the transaction costs involved in liquidating assets to raise cash.
• B)a positive strategy because it relieves the firm from having to obtain short-term financing.
• C)a negative strategy because it means that the cash is not earning a return.
• D)a negative strategy because it imposes additional currency risk on the firm.

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Definitions:

AFL

The American Federation of Labor, a national federation of labor unions in the United States, founded in 1886, focusing on advocating for workers' rights and interests.

Revolutionary Union

A labor union that seeks radical change in society and the economy, often advocating for the overthrow of existing class structures.

Industrial Workers of the World

An international labor union founded in 1905, also known as the Wobblies, aimed at unifying workers in a global struggle for socialism.

Knights of Labor

An influential labor organization in the late 19th century in the United States that aimed to protect and fight for workers' rights.