When a Firm Has Excessive Cash, Managers May Make Use

question 88

Multiple Choice

When a firm has excessive cash, managers may make use of the funds in an inefficient manner. This is also referred to as the ________ cost of retaining cash.

• A) fixed
• B) agency
• C) interest
• D) special

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Definitions:

Gender Role

Societal norms dictating the behaviors, tasks, and responsibilities that are considered appropriate for men and women.

Mortality Rate

A measure of the number of deaths in a particular population, scaled to the size of that population, per unit of time.

Fatal Illnesses

Diseases that lead directly to death, often characterized by a lack of effective treatment or cure.

Chronic Diseases

Long-term medical conditions that are typically progressive, such as heart disease, diabetes, and chronic respiratory diseases.