When a Firm Has Excessive Cash,managers May Make Use of the Funds

question 79

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
• E)hidden

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Definitions:

Factoring

The process of breaking down an expression into a product of its simpler factors.

Equation

A mathematical statement asserting the equality of two expressions, typically involving variables and constants.

Factoring

The process of breaking down an expression into a product of simpler elements or factors.

Square Inches

Square inches are units of area measurement equal to the area of a square with sides one inch in length.