The Theory That Excessive Cash Balances Lead Managers to Make

question 32

Multiple Choice

The theory that excessive cash balances lead managers to make bad decisions is called the:

• A)agency cost of free cash flow.
• B)excessive cash problem.
• C)opportunity cost dilemma.
• D)cash balance trap.

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Definitions:

Feet Motions

Movements involving the feet, such as walking, running, or kicking, which are essential for locomotion and balance.

Inch Forward

To move slowly and carefully in a forward direction, often to make progress in a difficult or delicate situation.

Proximodistal

A pattern of development that moves from the center of the body outward to the extremities.

Cephalocaudal

Cephalocaudal is a principle of development that describes how growth tends to begin at the head and upper body parts and then proceeds down to the rest of the body.